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"Compared with European countries and the United States, the penetration rate of household and kitchen appliances in China is relatively low, and this segment has huge growth potential in the future," Si added.

"Companies can ride the rising demand to focus on other high-tech, value-added products. Domestic toy manufacturers' competitiveness reflects not only in their price labels today but in their development capacity as well as intellectual innovation."

"Combined revenue of retail and dining in the seven-day Spring Festival holiday totaled 1 trillion yuan (3 billion) in 2019. During the same period of this year, the loss of Chinese dining business operators may reach 500 billion yuan," the report said.

"China's economy took off quite well in the beginning months of this year. As more social capital will be reallocated, the A-shares market is still lucrative," according to Guotai's note.

"China would have to make a justified and necessary response."