Nearly one third of small investors, or more than 20 million, have fled the turbulent stock market.

The number of small investors holding stocks in their accounts slid to 51 million at the end of July from 75 million at the end of June, according to China Securities Depository & Clearing Corp, the government agency that tracks accounts. Shanghai Composite Index plunged 14 percent, 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. According to data from China International Capital Corp, small investors hold about 80 percent of outstanding shares of public companies.

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. At end of July Chinese investors have suffered loss of 6.8 trillion yuan ($1.1 trillion).

Despite stocks becoming cheaper due to market plunge, fewer people are entering the market. Compared to June, 20 percent fewer new accounts were created in July.

Bank deposit is still the favorite investment tool for Chinese families. Up to 50 percent 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.