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"But we should care about any cliff-style drop of credit in the future," or a sudden slowdown in credit growth, Hu explained, because large policy changes may lead to unstable expectations among investors.

"Certain regulation is necessary," he said. "But as ICO has been such an efficient way for tech companies to raise funds, I believe it is more likely to be a short-term ban until they can regulate it efficiently."

"China has vast grasslands along its border," said Yu Guangjun, director of the institute of economics at the Inner Mongolia Academy of Social Sciences. "These have been vital to curb the trend."

"Changes in any single country will only have a minor influence on Huawei's global business," he said.

"But that means that the market is reaching its bottom. Investors should avoid dumping shares of good companies," Yang said.