China is a huge market of cryptocurrencies. Their banning of Bitcoin exchanges will definitely have a negative impact on the market. Market might experience a relatively large dump. But market as always will ultimately recover and will come back on track.
Of course china is a big market for cryptocurrencies and by banning exchanges its really give a huge affect into cryptocurreny world. Look at the price of bitcoin right now, the price is falling so hard. Its around $4,030, i'm afraid it will continue fall more deeper than before.