Should the torrent inflows continue, it could fuel inflationary risks. But a monetary tightening would result in a compromise on market confidence. Given the woes on the export front, policymakers are also less likely to allow a heavy one-off appreciation of the Chinese currency.

Ma Delun, Vice Governor of the central bank, said regulators will keep a vigilant eye on the capital inflows and align policies with unfolding economic situations.

Expanding Abroad

With the global economy displaying signs of life, Chinese companies are hunting down opportunities to expand overseas before the recovering prices put their target assets out of reach.

Non-financial outbound investments by Chinese firms in the third quarter soared 190.4 percent year on year to $20.47 billion, said the Ministry of Commerce in a statement on its website.

In a bid to further propel outbound investments, the country will for the first time hold the China Overseas Investment Fair on November 3-4 in Beijing. A number of foreign business leaders and government officials will attend the fair to promote investment opportunities in their countries.

The investments helped the number for the first nine months grew by 0.5 percent from a year earlier to reach $32.9 billion, nearly 44 percent of which were in the form of acquisitions focused on the mining and manufacturing sectors, said the ministry.

Major deals so far this year include a deal struck in June by Sinopec, the country's largest oil refiner, to buy Swiss oil explorer Addax at a price of $7.24 billion.

The ministry attributed the investment buoyancy to a series of government incentives that smoothed the way for homegrown companies to go global. For instance, the State Administration of Foreign Exchange has simplified the application procedures for outbound investments.

Chalco Gains Shine

By turning loss into profit, Aluminum Corp. of China Ltd. (Chalco) is lending credence to its pledges to shake off further downturns.

The aluminum giant reported a net profit of 21.27 million yuan ($3.11 million) for the third quarter this year, reversing a three-quarter losing streak.

Analysts believe the broader economic rebound helped lick the wounds of the crisis-stricken company. The efficient cost control and price increases of aluminum were also a needed improvement, the company said in its quarterly report.

Domestic aluminum prices have soared nearly 10 percent in the past three months on the back of an uptick in demand.

"The turnaround was in line with expectations given a vibrant market full of optimism," said Li Xiao, an analyst with Macquarie Research.

Many aluminum makers are now ready to fire up their idled smelters. But Li added this might re-ignite the risks of overabundance.

A Helping Hand

The financing problem of smaller firms has started to show signs of easing, though a substantial turnaround is still some way off.

The loan balance of Chinese financial institutions to small and medium-sized enterprises (SMEs) had climbed 28 percent from the beginning of this year to 14.1 trillion yuan ($2.06 trillion) by the end of September, said the central bank.

The growth is phenomenal, given the fact that an array of immense infrastructure projects has absorbed a flood of funding, said Fu Lichun, a banking analyst with the Chongqing-based Southwest Securities Co. Ltd.

Loan risks resulting from bank lending to SMEs are subsiding. The central bank said non-performing loans to the SMEs had stood at 534.1 billion yuan ($78.1 billion) by September, down 71.6 billion yuan ($10.5 billion) from the beginning of this year.

Investing in Qinhuangdao

The Qinhuangdao Investment Environment Conference was held on October 24 in Beijing to allure investors to the northern coastal city in Hebei Province.

Rich in tourism resources, the city is now geared up to improve its transportation infrastructure and other services catering to travelers from home and abroad. In addition, the city is also strengthening efforts to build a high-end manufacturing industrial base, including wind turbines and heavy machinery.

"The city has a great potential for future growth given its sound investment environment and deep commitment to technological innovations," said Liu Chenyan, Vice Mayor of Qinhuangdao.

Despite the financial crisis, the city has attracted $3.14 million in accrued foreign direct investments in the first half of this year, an increase of 40.9 percent year on year, according to data from Qinhuangdao Municipal Bureau of Commerce.