China is poised to see a further 20 per cent rise in its total number of high net worth individuals this year as wealth creation and preservation continue to drive investment choices, a study by Bain & Company reveals.

In the research titled "China Private Wealth Report 2013," the number of Chinese HNW individuals grew to over 700,000 at the end of 2012, more than doubling since the end of 2008. The report defines an HNWI as someone with approximately $1.6 million in surplus assets.

Average individual investable assets per HNWI were RMB29 million ($4.7 million) in 2008, the study said. This is expected to grow to RMB31.8 million by the end of 2013. There are currently 20 provinces in China with HNWI populations exceeding 10,000.

As the number of wealthy individuals grew, so did investment behaviours. In 2009, "wealth creation" topped the list of wealth management objectives. In 2013, this dropped to fourth place. On top is "wealth preservation" followed by "quality of life" and "children's education." Greater attention is also now being placed on "wealth inheritance planning," so with "establishing family trusts."

"With the development of China's private wealth management market and proliferation of investment channels, HNWIs' demands in investment management have become more sophisticated. They have stronger needs in mid- and long-term wealth planning and have rising demands in wealth preservation and inheritance," said Sameer Chishty, Bain partner in Hong Kong and global head of the company's wealth management and private banking practise.

Further, the study added that the percentage of HNWIs and ultra-HNWIs (those with at least RMB100 million in investable assets) with overseas investments have doubled since 2011, with 50 per cent of UHNWIs now invested abroad. Around 60 per cent of those interviewed and currently have overseas investments said they expect to increase their overseas holdings.