In the aftermath of China's 2015 stock market crash , mainland investors have often been referred to as "punters," "gamblers" or "cash hoarders." Authors of a new study beg to differ.

A report released Thursday by Charles Schwab and the Shanghai Advanced Institute of Finance seeks to dispel the characterization of China's emerging affluent investors, whose annual after-tax income ranges from $19,060 to $152,500. By 2020, this group is projected to more than double to 280 million, from 120 million in 2012, the study said.

"This group is neither a homogenous mass nor a group of thrill-seeking speculators. It is a diverse group with long-term goals that has been forced to rely on short-term methods to cope with volatile markets and an immature financial services industry."

Having surveyed 450 investors, only 13 percent invest for short-term purposes, such as turning a quick profit or generating enough cash to make a major purchase, while 87 percent invest as a means to improve their standard of living, retire or their children's education, the study found.

Analysts have long bemoaned the lack of sophistication among Chinese investors for the gyrations in the country's financial markets.

From June-August last year, market commentators cited the short-term activities of retail investors, who make up the bulk of trades, as a key factor in the millions of dollars' worth of shares that were wiped out in Shanghai (Shanghai Stock Exchange: .SSEC)and Shenzhen (Dow Jones Global Indexes: .DJSZ).

Long-time China watchers such as Fraser Howie, an independent analyst and co-author of "Red Capitalism," have argued that the bulk of Chinese are speculative traders.

Thursday's study revealed greater factors were at play.

"Much of Chinese investors' herd mentality stems from the fact that regulatory changes have a far greater influence on equity investment in emerging markets than in developed markets."

Investors in developed markets can invest money in stocks, real estate, bonds, and other derivatives but their Chinese counterparts lack such a wide array of choices and as a result, choose wealth management products (WMPs) issued by banks, the study stated.

The lack of a mature bond market, long-term products on the market and professional financial advisors were major challenges, the authors explained.

"While the incomes and expectations of China's emerging affluent have risen, China's financial services sector has not kept pace...Unlike upper-middle class investors abroad, most Chinese investors chart their financial futures without assistance from financial service professionals," the authors said.