Mutual funds will be the key beneficiaries from both China's GDP growth and a rise in personal incomes over the next 10 years, as fund holdings make up an ever-larger percentage of household assets, said Michael McCormack, executive director at Z-Ben Advisors in Shanghai.

He said assets under management by China's mutual funds are projected to reach $1 trillion by 2014, propelled by sustained high savings rates, rapid economic growth and an increase in the working-age population.

The industry's assets under management may exceed $2.2 trillion by 2020 while qualified domestic institutional investors (QDIIs) will rise in volume to $120 billion by 2014, accounting for 13 percent of the industry's assets under management.