Chinese shares fell on Wednesday and commodities nursed sharp losses as investors tempered enthusiasm for a Chinese economic recovery, while broader markets steadied on expectations that the U.S. economy can avoid recession and support global demand.

"The strong showing today is not a big surprise as the Chinese bourses are probably playing catch-up after both the Hang Seng Tech Index in Hong Kong and the Golden Dragon Index in the U.S. surged by over 10% in the first week of October when Chinese markets were closed for the Golden Week holidays.

Goldman Sachs predicts that the blowout surge in China's stock market still has a ways to go, with another 15% to 20% upside ahead. It's a standout call for a market that has already impressed in recent weeks.