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"China is becoming one of the largest consumer markets in the world, and this huge consumer market is still opening up. On the one hand, China's tax cuts on imported consumer goods are increasing, on the other hand, China's policy continues to encourage cross-border import e-commerce and other new forms of business," Gao Hongbing, president of AliResearch, said.

"By connecting social and retail environments, we will create innovative digital services and delightful experiences for our users, help brands build deep emotional connections with consumers and support the laying of strong foundations for long-term brand growth," said Davis Lin, senior vice-president at Tencent, who is in charge of the company's smart retail strategy.

"China has been on a very rapidly changing journey which many don't really fully appreciate ever since," he said.

"China is not in its bones a nation state but a civilization state. China has always had to accept a great deal of diversity across the country. Nation states such as in the West, where there is much greater homogeneity, would not be able to tolerate that difference," he said.

"China has sufficient foreign exchange reserves, a low foreign debt level and various monetary policy tools that can consolidate the basis for the yuan's stability," the note said.