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An opinion piece in People's Daily urged investors to remain rational.

Analysts said local governments are shifting their development strategies in accordance with the call by the country's top leadership for high-quality development.

Analysts said Huawei still has a certain inventory level of chips, which will give it time to come up with contingency plans, as well as to assess the progress of domestic semiconductor companies. They estimate that Huawei has a stockpile of processors for smartphones and 5G base stations that could last at least until early 2021 and possibly through most of the year.

Analysts say the move may prompt other premium brands to follow suit amid a slowdown in the world's largest car market. However, the segment is outperforming the industry.

Analysts said the phrase "or higher", used in the report, is a new expression that may indicate a willingness to raise the level later if necessary.