China is expected to overtake Japan as the world's second wealthiest country by 2016, said Credit Suisse AG in its annual Global Wealth Report.
According to the report, China will hold total fortune of US$39 trillion by 2016, compared to US$82 trillion for the U.S. and US$31 trillion for Japan.
However, the report said China's accumulation of fortune will happen alongside the expansion of wealth gap in the country. The report warned that China's Gini coefficient, a commonly used gauge of wealth inequality, has already reached an extremely dangerous level.
China currently holds a total wealth of US$20 trillion, ranking third around the world behind the U.S. and Japan, according to the report.
In the 18 months between January 2010 and June this year, China is the second largest wealth generator in the world only behind the U.S., with its total fortune rising by US$4 trillion.
So far this year, Chinese millionaires for the first time reached one million and now has more than 5,000 ultra-high net worth individuals with average fortunes above US$50 million, behind only the US, the report said.
Asia Pacific has become a key contributor of global wealth growth, accounting for 36% of global wealth creation since 2000 and 54% since 2010, said the report.