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"Chinese customers are not buying PSA's romantic designs as they fail to meet the needs of Chinese consumers," said the sources.

"Considering our current operation status, we are able to complete and may even exceed our global expansion goal of 200 cities," said Chris Martin, Mobike vice-president and head of its overseas expansion business. Much of that expansion will be domestic, but he said Mobike will cover more countries in the second half of the year.

"Consumption remains the main driver of growth, contributing 60.1 percent of China's economic growth in the first half," said Tang Jianwei, chief researcher at the Financial Research Center of the Bank of Communications. "The key is to use measures to strengthen the weak links and improve people's incomes. There's certainly a lot of room for growth in consumption."

"China's sound economic fundamentals for long-term and high-quality growth remain unchanged despite the epidemic," he said.

"China should keep deepening reforms and focus on transforming government functions to further bring out market vitality," Li said.