'Bearish trend on exchanges petering out'

Current sell-offs are an overreaction by pessimistic investors and sentiment driven, according to analysts

Despite the volatility and lower closing, Chinese equities are slowly moving out of the bear phase, analysts said.

Though equities fell to a 13-month low on Wednesday, analysts said the rebound seen during afternoon trading is an indication of the improved market sentiment and the change from extreme pessimism to a neutral stance.