Beijing: Some 24 million small investors in China or nearly one-third of the investors in the country's stock market fled the turbulent market after the recent crash that wiped about USD 3.2 trillion of capital, a government agency said.
The number of small investors holding stocks in their accounts slid to 51 million at the end of July from 75 million in June, China Securities Depository & Clearing Corp, the agency that tracks accounts said.
Shanghai Composite Index plunged 14 per cent, a record single month drop in six years.
Unlike institutional investors dominated US stock market, small and individual investors are major players in Chinese stock market, state-run China Daily reported.
According to data from China International Capital Corp, small investors hold about 80 per cent of outstanding shares of public companies.
China has pressed in police to investigate massive stock market crash wiping about USD 3.2 trillion of capital. Official media put the losses around USD 1.1 trillion.
Since the start of market plunge after it hit peak in mid June, government rolled out series of easing policies and measurement, but the results have had limited impact.
Despite stocks becoming cheaper due to market plunge, fewer people are entering the market. Compared to June, 20 per cent fewer new accounts were created in July, the report said.
Bank deposit is still the favourite investment tool for Chinese families. Up to 50 per cent of disposable income will end up in families' saving account, according to data from World Bank.
Due to recent volatility, it is unlikely that many families will move their money from saving account to stock market.
China's recent stock market crash in June 12, wiped out about three trillion dollars of capital. The fall sent a warning to China's economy that has already faced downward pressure such as sluggish external demand and weak investments.
The stock market had lost around 29 per cent of its value since its peak of 5,178.19 points.
