Half of the richest people on the Chinese mainland are spending at least 1 million yuan (US$151,000) a year, mainly on real estate, luxury watches and diamonds, according to the latest Hurun Report.

More than 50 percent, or 11 percent more than a year ago, of the mainland's wealthiest, who each have assets over 10 million yuan, spend between 1 million yuan and 3 million yuan annually. On average, each multi-millionaire spends 1.9 million yuan a year and owns more than three cars, according to the report released by Rupert Hoogewerf.

Real estate is still the major investment choice of a third of the rich group, despite stricter policies on house buying.

Stocks come second, with 25 percent choosing them compared to 33 percent three years ago.

Meanwhile, many millionaires are choosing to invest in art and unlisted companies - two rapidly growing sectors - according to the report.

The rich also like to spend on watches, diamonds, wine, luxury cars, travel, children's education and entertainment.

More than 50 percent of parents are sending their children to schools in the United States and Britain. Canada ranked third, followed by Switzerland.

China's luxury market is expected to grow 23 percent in 2010 from 68 billion yuan in 2009, according to a report by Bain & Company, and the country has become the world's No. 2 luxury market behind Japan, the Financial Times said.

"Luxury shoppers in this decade are more likely to be Chinese, more likely to be male, and more likely to be young," said Claudia D'Arpizio, a Bain & Company partner in Milan.

More than 400 of the mainland's wealthiest people were interviewed for the Hurun report.

The average age of those with more than 10 million yuan was 39, and those with at least 100 million yuan were 43 years old, both a year younger than last year.

The majority were involved in real estate and manufacturing.

The mainland has some 875,000 people with more than 10 million yuan in assets, and 55,000 of them have more than 100 million yuan, according to a Hurun wealth report released last April.