The majority of China’s wealthiest people live outside the huge cities of Beijing, Shanghai and Guangdong, according to a study by Hurun Report, a Shanghai-based luxury business portal.

The Hurun 2009 Wealth Report found that 825,000 people in China have personal wealth of more than RMB10 million ($1.47 million) while 51,000 people are worth more than RMB100 million. Fifty two percent of these millionaires live outside the major cities.

The study says companies looking to tap into China’s local market are better served by looking beyond Beijing and Shanghai and establishing their presence in second and third-tier cities such as Chengdu, in the south west, and Wenzhou, in the south east.

According to a separate report made by McKinsey & Co: “In Beijing, the biggest brand names often have several retail outlets, but many go unrepresented in Chengdu or Wenzhou even though Chengdu has more wealthy households than Detroit, and Wenzhou as many as Atlanta.”

According to the Hurun Report, 48 per cent of China’s richest are concentrated in Beijing, Guangdong and Shanghai. Beijing is home to the most millionaires with 143,000 individuals valued at more than RMB10 million and 8,800 individuals with more than RMB100 million.

Guangdong Province follows with 137,000 millionaires, then Shanghai with 116,000, and Zhejiang Province with 110,500. In Hangzhou, the capital city of east China's Zhejiang Province  and Wenzhou there are 42,300 and 18,200 millionaires respectively.

Researchers based the ranking on measured private wealth, including businesses, luxury cars, taxes, company registered capital and private residences.