China must boost the development of a medium and long-term investment and financing market to build a highly efficient financial system, according to Chen Yuan, governor of China Development Bank.

Chen said Friday at the 6th China M&A Annual Conference held in Shanghai that a medium and long-term investment and financing market is one pillar of the financial system and an important fund channel for local economic development and large-scaled enterprises.

"As a developing country, China's urbanization would last for more than 100 years," said Chen, adding that long-term construction needs huge capital input.

Meanwhile, he urged that in building such a market, the government, market and financial agencies should collaborate closely. Financial institutions need to improve their competitiveness by strengthening internal risk control and relying on good services and innovation.

Cui Jindu, vice mayor of Tianjin Municipality, said at the conference that China needs to push forward financial innovation in face of global financial uncertainties, adding that if China did not take an active role in the process of financial globalization, more risks would be involved.