In September, after the turning of Producer Price Index (PPI) from negative to positive, China's manufacturing industry’s Purchasing Managers' Index (PMI) in the month of October rose to more than 51% for the first time in two years, while the non-manufacturing business activity index is this year’s highest. Anbound research team believes that although the reform of the supply side has reached certain effects in terms of production, but to a large extent the current round of economic stabilization depends on infrastructural development, property and automobile. Policymakers and enterprises need to be wary of the illusions of the data on the increase of the price caused by excess capital, and there is the need to avoid premature expansion of production capacity or excessive replenishment of inventories. Sustaining long-term growth momentum requires further acceleration of market-oriented reform, shifting the investment focus from short-term industrial stimulation to long-term sectors like social, private, pension, medical and education which will further release the consumer potential and enhance market vitality.