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"Everyone, government officials and businesspeople, understand that industry has to upgrade. If you don't upgrade, you will be expelled from the market. If you upgrade, it may bring some hurt. But, if you don't upgrade, the only question is whether you die early or die late."

"Expected regulatory standards will include a capital adequacy ratio and liquidity ratio, aimed at curbing excessive borrowing and high capital leverage of the groups," said Lian. "Indicators to show insider trading and connected transactions should also be written into the rules."

"Despite the current challenges, China's pig breeding industry is heading toward a more intensive, environmental-friendly and risk-resistant growth model," said Feng, an analyst with soozhu.com.

"Farmers are a vulnerable group in our society, and we hope this incident will have a silver lining," he said.

"Cyberspace is not a lawless place, and every step taken online should comply with the law and social morality including business innovation," said Shen Yi, a professor with Fudan University in Shanghai.