Money Laundering & Pyramid Schemes
Darknet Transactions
Lack of Licensing
Market Manipulation & Security Concerns
China probably have the strongest online censorship in the world. I don't think that money laundering thru cryptocurrencies and darknet transactions are such big problems for them that they decided to shut down exchanges. But the last points seems more serious. China already invesed a lot into cryptocurrencies so now they the government just wants to controll those investments (as any other authoritarian country).