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Analysts hold there is room for further tax reductions through measures such as lowering corporate income tax and expanding the scope of expense reductions for enterprises. Currently, China has three brackets for value-added taxes at the ratios of 17 percent, 11 percent and 6 percent respectively. The country can reduce the three brackets into two in the future, analysts suggest.

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And there seems to be plenty of room for newcomers also, with 47 percent of businesses generating a positive return on their investment in Asian operations within three years.

Analysts said the government's plans for the new area will likely further boost sentiment toward stocks of related companies headquartered in Beijing, Tianjin and Hebei province.

Andrew Leung Kwan-yuen, president of the Legislative Council, said he understood and respected the decision made by the Standing Committee of the NPC, and he urged people from across the political spectrum in Hong Kong to take a pragmatic approach and work for the best interests of the community.