is that a bad news ? 
Not really. It's more pathetic. I always consider Chinese exchanges volumes 10x lower than what they are. If they have a 24 hour volume of 500,000BTC I simply count it as 50,000BTC volume.
If this would be the case, the volume still would be impressive.
well 60% of miner are probably dumping their coins there causing the volume to increase(after a month you have 1800 x 30 = 54000 coins dumped, which is a big amount) more than any other exchange, it should explain it, even if we count the fake volume
The daily mined coins are only 3600, way below the 1.0 million volume in the first two Chinese exchanges.
When the transaction fee is 0%, the volume is suspicious.