THE number of millionaires in Asia and their aggregate wealth rose last year at a faster pace than the global average as they increased holdings of equities and bonds, according to a Merrill Lynch survey of rich individuals.

About 2.8 million people in Asia held US$1 million (S$1.5 million) or more in financial assets in 2007, an 8.7 per cent gain from 2006 and more than the global 6 percent increase, the Merrill's annual study showed.

The net worth of Asia's wealthy people rose 12.5 per cent to US$9.5 trillion, more than the 9.4 per cent global gain, added to the report.

Global stocks added US$11 trillion in market value in 2007, a 22 percent increase, led by Asian markets including China and India.

Equities plunged this year after a credit crunch toppled Lehman Brothers and boosted borrowing costs worldwide, reported Bloomberg news.

Investors have been turning away from stocks and now prefer less-riskier assets, said Mr Rhee Namuh, a Singapore-based managing director of equity research. He spoke on Tuesday at the World Knowledge Forum in Seoul, hosted by the Maeil Business Newspaper.

India's wealthy population grew 23 per cent last year, the biggest increase in the world, followed by a 20 per cent gain in China, according to the report. China's CSI 300 Index surged 162 per cent in 2007, while India's Sensex index added 47 per cent.

Asia's rich people cut their holdings of real estate to 20 per cent of assets in 2007, from 29 per cent the previous year, Merrill said in the report.

The ratio of equities rose to 26 per cent, from 24 per cent, while fixed-income investments increased to 21 per cent, from 15 per cent.