Key gauges of Chinese stocks have hit their lowest levels in about 10 months.
Global funds have withdrawn $3.8 billion this month, despite Beijing's effort to boost markets.
Trading activity has also slowed in September, falling 32% from the first week of the month.
Beijing's efforts to revive Chinese markets are falling on deaf ears, as traders continue to shed their equity positions.
Though the country's authorities pledged to invigorate markets at the July Politburo meeting, China's CSI 300 Index, a benchmark of mainland shares, fell Thursday to its lowest level since November. The MSCI China Index has also fallen to its lowest level in about 10 months.
This is in spite of measures introduced by Beijing to rev up the economy and bring back investors, such as reduced transaction fees on trading and tighter controls on stake sales among leading shareholders.
But the growth fears that hit China this year have dampened investing sentiment in the country. As Beijing contends with a mounting debt crisis in its property sector, as well as lackluster activity amid consumers and manufacturing, traders have been exiting the country for months.
Added to that are the Federal Reserve's high interest rates, which have made Treasury markets an attractive investing alternative. Wednesday's Fed meeting that signaled rates will remain higher for longer contributed to the Chinese withdrawal.
Meanwhile, global funds have shed $3.8 billion from onshore Chinese stocks, following a $12 billion selloff in August.
Trading activity in China has also dropped through September, with the daily average turnover for Shanghai and Shenzhen stocks falling 32% since the first week of the month.
To lift valuations, Hong Kong-listed firms are increasing share buybacks in the offshore market, while the largest Chinese companies are expected to give out a record 1.5 trillion yuan in dividends this year.
September's exodus has not been only limited to the equity market, with overall capital outflows from the country jumping to their highest pace since 2015.
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