Hmm... Does this mean that only banks can't deal with bitcoin (which is what Snail2's post implies) or that BTC exchanges and companies that deal with BTC can't have bank accounts with banks that don't deal with BTC? (which is what innocent93's post implies)? The two concepts are quite separate. A bank that decides to accept cryptos would be breaking the first rule and the second rule but a bank that merely lets companies that deal with BTC open bank accounts with them would not be breaking the first rule but it would be breaking the second rule.
Also if innocent93's post is correct, then it does make it much more difficult for traditional exchanges. However trading via LocalBitcoins would still be possible and is probably the best solution for someone who wants to buy or sell bitcoins in China right now.
Yes, the paper clearly describes Bitcoin is not allowed to be transaction currency, they ask all government agencies and company(including the banks) not to use Bitcoin to make payment.
There is not too much effect to the exchange.
We still can buy or sell bitcoin in Exchange as OKCOIN, HUOBI, in China.
Deposit fiat money is not convenient as before, but still very simple.
Bitcoin is a legal asset, but not a legal money.
Exchanges still has bank accounts, but only the withdrawal to bank accounts can be handled, deposits through bank is not available.