Banking system and debt are 'real challenges'

China's real GDP growth would be around 7 percent this year, but the real challenges are the banking system and high percentage of debt, said Byron Wien, vice-chairman of Blackstone Advisory Partners LP on Tuesday.

Wien said the banking system needs to be improved and debt as a percentage of GDP is too high. The economy has been growing by providing credit for real estate development, State-owned enterprise expansion and infrastructure projects.

"Consumer products companies and technology are the places to invest," said Wien, adding that over the next decade the renminbi is likely to rise in value.

All of these factors are likely to put some pressure on the economy, but China is still likely to grow at 6 percent or more over the next few years, he said.