Foreign private equity companies should be treated equally with domestic ones and bring in new ideas and experiences for cultivating innovative Chinese enterprises, said Yi Gang, vice-governor of the People's Bank of China and head of the State Administration of Foreign Exchange.

"It is estimated that 90 percent of the private equity investment projects in China exit through IPOs, while the ratio in the West was no larger than 20 percent," said Yi, explaining that foreign private equity companies have more and diversified ways to exit.

"That is why China needs to open its market and encourage foreign private equity companies to have equal competition with domestic ones and bring in new ideas and experiences for enterprises at different stages of development."

According to Yi, there are about 3,500 private equity companies in China capable of investing in tens of thousands of enterprises. Private equity investors select companies with potential and offer them funds and valuable experience, so they can play an important role in cultivating innovative Chinese enterprises.

Yi said foreign private equity companies have experience helping enterprises innovate in organization, products, talent retention, business rules, and laws and regulations.