China's A-share market has been in a slump since January with the Shanghai Composite and Shenzhen Component indices both falling significantly during the first three quarters. But as the A-share market becomes more internationalized, stock analysts expect a turnaround. 

Since January, the Shanghai Composite Index has fallen 17 percent from some 3,300 points to around 2,800 points, while the Shenzhen Component dropped more than 26 percent during the same period. 

Meanwhile, A-share market funding declined 34 percent year-on-year in the first three quarters. Supervision has also become stricter, and the IPO approval rate slipped to 55 percent by the end of September compared to nearly 80 percent in the same period of 2017. 

Experts believe the sluggish performance stems from a variety of factors. 

"First, the economic environment was not very good and liquidity was tightened. Second, the Sino-US trade dispute is having a negative impact. In addition, the US Federal Reserve raised interest rates. So investors have become cautious about putting their money in the domestic stock market," said Anthony Wu, national A-share market leader from Deloitte China.

But the situation may improve in the fourth quarter with the A-share market becoming more internationalized. FTSE Russel decided to include A-share stocks into its global indices, and MSCI is also considering increasing the weight given to Chinese A-shares on its Emerging Markets Benchmark Index, while the opening of the Shanghai-London Stock Connect at the end of this year leads to further openness among A-shares. 

Some experts believe that will help improve market sentiment. 

"With the newfound openness in China's A shares, foreign capital has gradually started flowing into the market. Investor sentiment will improve with these changes in place, but whether A-shares will grow sustainably still depends on how these changes will benefit the market," said Cai Junyi, Chief Analyst of Shanghai Securities.

The internationalization of the A-share market is expected to bring more financing. The FTSE move is expected to bring 10 billion US dollars into the mainland stock markets. And MSCI's increasing weighting of A-shares on its indexes will potentially bring some 66 billion US dollars of foreign cash into China.