Robust consumption

Although earlier indicators showed signs of weaker domestic consumption, rational observers remain quite optimistic about the sector's greater potential in driving China's economy and beyond.

The anxiety about China's consumers is largely overdone, said a report by British think tank Oxford Economics. "We remain fairly positive on China's consumption outlook."

China's retail sales will remain solid in 2019 thanks to strong consumption services and increasing growth-supporting measures despite a slowdown in the automobile sector, the report said.

The Chinese consumer continues to trade up more than down, according to the McKinsey Global Institute. Across fresh foods, alcoholic beverages, cosmetics and more, 10 times as many consumers report trading up to higher-priced goods than down.

These trends are driving increases in imports of premium goods from several Organisation for Economic Co-operation and Development markets, it said.

New York-based research firm eMarketer predicted that China would become the world's biggest retail market this year with total retail sales reaching $5.63 trillion.