Previous posters have repeatedly said China does this.  Ban. No ban.  It is just how the governments works.

Is this a bad thing, in terms of price?  Short term yes of course. Bitcoins price will fluctuate wildly on rumors and or news.  Negative news or FUD as its commonly referred to, has and most likely will drop the price further unless positive news soon follows.

Long term this is a good thing.  Healthy financial markets go up and down.  This bull market peaked in December and since, has steadily declined.