The reason why people in china have so much bitcoin is because they hate their own currency and how its controlled.  If I lived in china, and government shut down the exchanges it would make me want bitcoin even more than ever because its actually hurt the government enough for them to bring in regulation or bans.  It also makes it a rarer commodity since you wouldn't be able to get it very easily in china.

I suppose the panic here though is if china are banning it, then where will ban it next?  It would be a massive shame for bitcoin to be shutdown by the very establishment that it was created to defend against.  The thing thats cool is, at least we have their attention now

As for me, I wont selling any of my bitcoin!