They are trying to stop their people from cashing out in local currency, Cashing out Yuan will cause inflation for them, People now are trying to cash out in other countries to get dollar in exchange, They are in a war with the west. War of the coins 
I really want to see how it won't end up causing inflation still for them. China is just one controlling freaks and they have always been known to always come up with strict policies and I really do not know what they really want to drive at with them trying to make themselves feel good with their currency.I am sure most of the traders ended up moving to neighboring markets which I am sure is the reason why BTC-JPY market is on top now.