It maybe a fake news, I never heard that China will legalize ico, the government holds a clear attitude toward ico, especially the main task is to ensure the finance security, I think there is no way to legalize ico for two or three years in China
As it is, I do not even thing China is even ready to welcome any development for cryptocurrency at large let alone, ICOs. I am not sure where bitcoinist must have gotten that news from, but I really would not want to just take anything that come from online article news website just the way it comes.
After all these, it seems the way a lot of people have been placing the new governor of PBoC, there may be a slight chance something like that could be worked towards, but until then, there is still no news and everything is just a rumor.
I have been hearing some news about the new PBoC governor being a cryptocurrency enthusiast, so this may have some play. However, I would debunk anything for now, until it actually happens. There are so much fake news flying around and the crypto journalists are never helping matters as they really do not bother verifying news and all they are just after is the traffic for their website.