Brief English explanation of the announcement: (I am not a good translator so correct me if necessary)
1. ICOs = illegal fundraising. Bitcoin and Ethereum are not currencies and should not be used as currencies in transactions.
2. No organizations and individuals are allowed to start ICOs, and ongoing ICOs should stop immediately with investments send back to investors.
3. (Important) No cryptocurrency exchanges are allowed to offer currency-to-"cryptocurrency" exchange any longer, a.k.a. e.g. no CNY-to-Bitcoin or Bitcoin-to-CNY exchange allowed.
4. Financial institutes that are not banks must not offer any related services.
5. Investors into ICOs must take full responsibility into their actions (that is to say, if you lose your assets through such "investment", no laws would protect you)
6. blah...
If this is accurate, point number 3 is a pretty big concern and will impact trading in China massively.
If anyone else can chime in regarding translation, please do. This is a massive development if so.
China's exchanges don't have quite the influence that they once had a year or two ago, but that would basically destroy the entire business model of Okcoin, Houbi and BTCC, among other exchanges.
Given that this seems geared towards ICOs, and I haven't heard anything from other people regarding fiat exchanges, I'm skeptical of Point #3 for now.