I'm here working in China and it's true. I know people here that trade BTC like I do and they've moved most of their funds out of BTCChina and into Chinese mutual stock funds. Their stocks are really hot now so it makes sense. Once their stocks stop popping they will be back.
I wonder if that change of heart Chinese people had happened because BTC price was down and they started to doubt Bitcoin. Or it is otherwise and stocks were so enticing that people abandon bitcoin for it?