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Analysts from Essence Securities said that companies closely related to economic cycles will play a leading role in sustaining the bullish trend on the A-share market. Companies in sectors like home appliances, automobiles, nonferrous metals, coal and securities are likely to be in demand, they said.

And it's not just retailers that are noticing the boom in sales. Those in the food industry have also been riding on the growing wave of the Christmas spirit.

Analysts suggested that Chinese financial regulators would do well to consider various available options for trading bonds in default and then finalize a suitable trading system.

Analysts expected the manufacturing sector to continue to pick up over the coming months, but cautioned about the uncertainty over external demand and the pressure on employment.

Analysts have said that since the new tariff would target retail items, along with other consumer goods, the impact on the US economy will be more direct.