China needs to speed up reforms of the financial system to support economic development, according to experts at the 6th Global PE Beijing Forum.

Shao Bingren, chairman, China Association of private Equity, said the market-oriented reforms of the financial system have been slower than economic development. Banks are still the main channel to obtain funds for companies. In order to change this situation, China should push for renminbi internationalization as well as promote interest rates marketization.

Opening the financial industry and reforming the regulatory system will also aid China's financial development, he said.

In China, the saving ration is higher than 50 percent.

As part of financial reforms, China should convert the high savings into investment, such as in social security, said Liang Hong, chief economist of China International Capital Corporation.

Currently, China is under the "new normal", with the economic growth slower and economy systems undergoing restructuring. Facing the "new normal" will not only be a challenge, but also an opportunity for the private equity (PE) industry.

In China, urbanization will promote consumption among the new urban population, which is an opportunity for PE sector. The consumption refers not only to daily consumer products, but also includes the housing and financial products, she said at the forum.

With the financial reforms, the investment habits of people will change from real products to securitization. For instance, instead of buying a house, consumers can buy the securitization products in the capital market to invest in the real estate market, she added.

Shan Xiangshuang, chairman and president of China Science and Merchants Capital management Group, said the reform of financial system would bring huge bonus that could offset the losses due to the economic downturn. He said China's A-share market will continue to see the bull run. As the stock market booms, the PE industry will also improve in China.