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"Given the strong presence of leading and fast-growing IT firms in the area, Zhongguancun remains a bright spot for investment opportunities in Beijing," said Michael Wang, head of capital markets for JLL in Beijing.

"Fragrance consumers in China are expanding rapidly from women to both men and women, and the market scale is projected to reach 23.3 billion yuan (.28 billion) in 2018," said Cai Zhihao, a researcher with the Shenzhen-based Qianzhan Industry Research Institute.

"For the first few months after my company started operating, the local police visited the factory several times a week. They suspected we were secretly making illegal drugs in the mountains, like you see in the movies," said Pan Zongbing, CEO of Hankang (Yunnan) Biotechnology.

"Foreign managers bring a unique set of experience and skill to the Chinese asset management industry, particularly in areas such as quantitative investment. Having a wider set of local and foreign managers managing different strategies in China increases the choice available to investors and, most importantly, it allows investors to diversify their investments," Steel said.

"For startup companies, the costs and talent pool are the two key factors. Before we settled down in Suzhou, I had studied a number of other cities, but only Suzhou can provide the ideal entrepreneurship environment and affordable operating costs. The many policies to attract experts and industry leaders are also crucial to companies in their early days," he said.