Challenges tackled with financial innovation

Su said this is a sign that the nation's fiscal system is maturing.

"With economic growth in China reaching a higher level, there is less room for macro policy maneuvering. Normalization of directly allocated budgetary funds means the central government is placing more emphasis on the effective use of funding," Su said.

She added that this year, when recovery became the main focus of macro policies, directly allocated budgetary funding showed that the government's determination to protect businesses would continue.

With the end of the year approaching, experts are banking on some limited support policies to anchor market expectations.

In view of recently detected COVID-19 cases, Feng, the Chinese Academy of Social Sciences researcher, suggested that despite further tax cuts, related compensatory relief measures should be studied and introduced to better handle market expectations.

"COVID-19 cases in China have now become sporadic, with a small number of people being affected. Yet such cases are also hard to predict," Feng said.

"We believe a compensation mechanism to cope with such situations well in advance will help keep business confidence stable."