(ECNS) -- The number of high net worth individuals (HNWI) in China with at least 10 million yuan (.47 million) in investable assets hit 1.58 million in 2016, half a million more than in 2014 and twice the number in 2012, according to the 2017 China Private Wealth Report.
The report by Bain Consulting and China Merchants Bank said around 120,000 HNWIs had at least 100 million yuan in investable assets compared with fewer than 10,000 people in 2006, while 230,000 wealthy individuals hold at least 50 million yuan worth of investable assets.
The value of investable assets held by HNWIs in 2016 reached 49 trillion yuan, annual growth of 24 percent from 2014 to 2016. The report said value of the wealth market was 165 trillion yuan at the end of 2016, a fivefold increase over 10 years.
The HNWIs were mainly from Guangdong, Shanghai, Beijing, Jiangsu and Zhejiang, accounting for 47 percent of the total.
Private securities funds, wealth management products by securities companies and Internet-based financial products contributed significantly to overall investment growth, said the report.
Investment in real estate was still favored by HNWIs amid the booming property market of recent years. Wang Jing, general manager of private banking at China Merchant Bank, said the fall in interest rates since late 2014 and a flexible exchange rate led to a recovery in the property market.
The net value of investment property saw its compound annual growth rise from 8 percent in the 2012 to 2014 period to 30 percent from 2014 to 2016.
The report projects an 18 percent increase in the number of HNWIs to 1.87 million by the end of 2017 and a 14 percent increase in China's private wealth market from 165 trillion yuan to 188 trillion yuan.