Chinese stocks took a beating this year, but a recovery may not come until the second half of 2019, experts say.
The Shanghai composite and main Shenzhen index are down more than 20 and 30 percent, respectively, this year. That puts Chinese stocks among the worst performers globally, where the S&P 500 is off by more than 6 percent, Japan's Nikkei 225 is down more than 9 percent and the German DAX has lost some 16.6 percent so far this year.
"There's really not much impetus for the market to rebound," said Zhu Ning, professor of finance at Tsinghua University and deputy director of the National Institute of Financial Research. "The sentiment is not recovering, and there is not new capacity. I wouldn't be too optimistic about the market next year."
China is planning to launch a new board in Shanghai for listing technology stocks next year, and Zhu said he expects that to dilute the market — with investment funds spreading instead of increasing.