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As President Donald Trump is taking a tough stance against China on trade, investors are keeping a close eye on China's holdings of US treasuries. But market analysts say China is unlikely to use dumping US treasuries as a tool for retaliation, as it would come at a heavy cost to both countries.

As for whether China will follow US Federal Reserve future steps to raise interest rates, Yi Gang, vice-governor of the central bank, said the PBOC mainly looks at the domestic economic and financial conditions and will make comprehensive consideration.

As Shenzhen is a national entrepreneurial hub, HEC Paris' Dean Peter Todd said that the alliance will "allow greater mobility and networking between France and China for students, faculty members and startups".

As excess capacity has weighed on China's overall economic performance, cutting overcapacity has been high on the reform agenda. In 2016, China completed both its annual targets for coal and steel capacity reduction ahead of schedule.

As a result, Chinese investors may see increased after-tax returns from the US investments, and Chinese multinational enterprises may suffer fierce competition from their US counterparts due to the reduction of the US corporate tax rate, said a research note from the KPMG professional services firm.