Over million rich Chinese to scatter deposits

China's proposed bank deposit insurance system may see no less than one million depositors transferring their wealth to different banks, according to the Securities Daily on Tuesday.

The number of rich Chinese having assets worth more than 10 million yuan totaled 1.09 million by the end of 2013, the report said quoting the figure from Hurun Research Institute.

Another statistics from Forbes magazine said China had 11.97 million rich people with investable assets of $100,000 to $1 million by the end of 2013, and this figure will reach more than 14 million by 2014.

Based on the above figures, the Securities Daily report predicted that over one million rich Chinese will scatter their deposits to different banks to avoid risk.

Provinces with highest amount of deposits from residents, such as Beijing, Shanghai, Guangdong and Zhejiang, may possibly see high deposit liquidity, said the report.

According to the People's Bank of China (PBOC), the proposed insurance scheme will cover a maximum of 500,000 yuan ($81,566) per deposit account (yuan and foreign currency), allowing for full insurance of 99.6 percent of accounts or an estimated 46 percent of total deposits.