China's rapid economic growth has caused the number of rich people to rise swiftly. By the end of 2007, the country had 415,000 wealthy people, a 20.3 percent jump from the previous year, according to the third annual Asia Pacific Wealth Report released by Merrill Lynch and Capgemini.

People dance at a ball in Nanjing, east China's Jiangsu province, March 14, 2007. [CFP]

The rich people in the report were those who owned more than $1 million in property, excluding their own residence. The average wealth of rich Chinese is $5 million, the report said.

Still, Li maintains the upper class in China is distinct from the merely wealthy.

"I agree that there is such an elite group in China," he said.

"Wealth is just one of the entry passes into high society and only a small number of people with wealth, social status and power can be called the upper class."

Most of them are business tycoons in both private and State-owned enterprises, as well as a number of powerful officials, Li said.

"This social differentiation is inevitable in China because of economic development," he said.

"It can be a stimulus for social development as long as every one has equal access to wealth."

Some entrepreneurs acknowledge the presence of a wealthy class.

"I believe there is an upper class in China but I am not part of it," Kevin Zhou, 31, a private entrepreneur of a large general motor manufacturer in Chongqing, told China Daily Wednesday.