Panic-selling at the stock exchange

The Shanghai stock exchange has taken another dive south on Tuesday, after it already fell 8 percent on Monday. In the morning of Tuesday it was well below 7 percent at some stages. It show that some panic-selling is taking place and it would be worthwhile to stroll along some of the selling points in the city.
The question is when the money moves back in the market and how much damage investors have suffered by selling. In my estimate at the first point when the drop seems to ease, the market will go up very sharply.

Update: Indeed, the swing upwards came faster than I expected. After reaching a few now lows today, the Shanghai stock market ended more than two percent positive. Expect this trend to continue for the days to come.