BEIJING - China holds huge market potential for digital wealth management as more Chinese fintech firms are using technology in wealth management services, according to a report released on Tuesday.

China's wealth management market reached $6 trillion, with an online sales penetration rate of 34.6 percent, by the end of the first quarter, both ranking second globally behind only the United States, according to a report jointly released by global consultancy firm Boston Consulting Group (BCG) and Chinese fintech firm Lufax.

According to BCG estimates, China had around $2 trillion in online wealth management in 2017, second only to that in the United States.

However, independent third-party internet wealth management -- a business model deemed closest to digital wealth management -- has a penetration rate of only 10 percent in China, compared with 35 percent in the United States, which means digital wealth management overall has ample room for growth in China, the report pointed out.

China now has a strong footing and is expected to become the world's fastest-growing digital wealth management market, with technology playing an even greater role in the industry, the report said.

As China's digital wealth management market undergoes fundamental changes, market players will face disruptions in terms of user needs, policy, technology, and market environment.

Market players should improve their value proposition, business model, client value management system, investment research and advisory capabilities, technological application capabilities, and develop an agile organization, the report suggested.