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Armed police officers participate in a funeral ceremony to bury the bones of Red Army martyrs found in Guanyang, Guangxi Zhuang autonomous region, on Sunday. Zhou Linlu/China News Service

As Leung explained, equipment manufacturing as well as research and development are included in the Made in China 2025 strategy. These companies usually invest heavily in their early days in machines, plants and all other related facilities. It will take a long time before they finally register sales and profits. With the new policy, the VAT can be retained, which means that companies can enjoy a tax rebate when they eventually report sales results. It can largely secure their cash flow and relieve this tax burden.

As 70 billion yuan of reverse repos matured Thursday, the operation led to a net injection of 10 billion yuan into the market.

Apple shipped more than 17 million iPads in the second quarter, up 84 percent from the same quarter a year ago, coming in with 68 percent market share. Samsung shipped 2.4 million, up 117.6 percent, for 9.6 percent market share. Amazon came in at No. 3, with 1.25 million units shipped, for 5 percent market share.

Apple reported shrinking sales revenue in China across all of its leading products, including iPhones, Macs and iPads.