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Another was Wang Xiling, a farmer from Baoji, Shaanxi province. She was diagnosed with cancer in 2011 and widowed two years later. But the misfortunes failed to crush the 50-year-old. With financial aid provided by the local government, Wang formed a rural cooperative, cemented her economic standing and offered jobs to other poor farmers attempting to shake off poverty without leaving their home villages.

Anxiety about school selection has also led parents to enroll their children in intensive after-school private training sessions to ensure successful interviews. Anxiety has prevailed and complaints of children being overburdened have run rampant.

Another important driver of the recent rally is the low risk-free interest rate. The yield on China's two-year or five-year treasury bond has been lingering between 2.2 percent and 2.7 percent, while the 10-year treasury bond yield is around 3 percent.

Another supportive catalyst is bond buybacks by the companies themselves, which signal abundant liquidity and a faith in the market's fundamentals. Several issuers have already announced bond buybacks, and more are likely to come. These have been mostly in short-term debt, where the issuer can buy back their bonds at a discount and book a profit now, rather than repay at full value a few months later.

Another 18 billion yuan will be saved for power users through a reform that promotes market-oriented pricing for power sale, he said.