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"Even if my factories get eliminated (as part of the area development), internet-led businesses might be welcome, because cables will be still needed in the development of Xiongan," he said. "They will be needed in buildings and transportation facilities such as subway train systems," Xu said.

"Especially when amounts are less than million," the individual said.

"Each time they brought this up to us, the story changed, and each time we investigated we found nothing," he added.

"Even though it is still in the early stage, central SOEs will face issues including monopoly and the placement of employees during the process of mixed ownership reform. But as these enterprises are all strong and competitive, they have the ability to solve problems such as employee placement," said Li Jin, chief researcher at the China Enterprise Research Institute.

"Dealers used to profit from buying low and selling high in local foreign currency black markets," it said. "Now they have shifted to illegal money transfers across borders, which caused a serious unsupervised outflow of capital."