"Macro numbers from national statistics agencies so far painted a mixed picture, with trade growth and credit expansion above market estimates and the Chinese New Year holiday Golden Week sales in line with expectations," he said.
"The national crackdown on some vices started in mid-February could dent consumption, but the impact could be hard to estimate," he added. The Chinese Ministry of Public Security on Sunday ordered police across China to ramp up efforts to tackle the "three vices" - prostitution, gambling and drug trafficking - warning officials they would be held accountable for illegal activities.
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In addition, he says it's becoming increasingly clear that Beijing will set its annual growth target – which it typically exceeds each year – at 7.5 percent again for 2014. China is expected to announce its economic targets on March 5 when its annual parliamentary meeting is held in Beijing.
Earlier this week, China's Ministry of Information and Industry set the annual target for industrial output (IP) growth – which is highly correlated with GDP growth – at 9.5 percent, Lu explained.
"Last year IP growth was 9.7 percent, while GDP growth was 7.7 percent. The 7.5 percent GDP growth target for 2014 is now well expected by the market," he said.
—By CNBC's Ansuya Harjani. Follow her on Twitter: