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As calculated by some financial institutions, the new facility is likely to release 1 trillion yuan (3 billion) to 2 trillion yuan more into the money market. In 2017, cash withdrawals rose by around 1.8 trillion yuan during the month of the Spring Festival, according to a research report from CITIC Securities.

As for used full electric vehicles, the residual value ratio was even lower. The numbers tallied 34.2 percent in June, 32.4 percent in May and 28.8 percent in April.

As for tariffs, China's commitment to the WTO was to reduce the tariff to 10 percent and now it stands at 9.8 percent, Wang said, adding that the Chinese government has announced its decision to further reduce it to 7.5 percent as of Nov. 1.

As for the demand side, China's automobile industry has had a sharp recovery from the pandemic lockdown, with the market experiencing eight consecutive months of sales growth.

As consumption, industrial output and fixed-asset investment all showed some softening signs in July, stronger and more coordinated efforts were needed "as soon as possible" to improve "weak links" in the economy, according to analysts.