Only 3rd party payment processors are banned. The rest is speculation and fear mongering. Bitcoin will live on in China, but with tightened regulations.
Zennon Kapron, a financial technology analyst and consultant whose company Kapronasia operates out of Shanghai, said as recently as three days ago one that of his friends had been able to fund a BTC China account through China Merchants Bank. The money arrived within a few hours.
Today, however, transactions resulted in errors and could not be completed.
Ref:
http://www.coindesk.com/sources-confirm-chinas-payment-processor-ban-bitcoin-price-falls/Reading things like the above is making me think more and more that the Chinese government intends on bringing the guillotine down on Bitcoin in their country.
If this turn out to be the case, then we are in for previously unthinkable lows in the coming weeks/months. Even if there were big queues of investors waiting to get into Bitcoin, they aint gonna jump in whilst a 46% share of the global market dissolves its interest in Bitcoin, combined with the undoubted panic selling that will occur in the USD denominated markets.
Interesting, as it shows how established powers can so easily allow or even encourage an Alt-Coin to grow massive, before dealing it a swift blow to the head, knocking it out cold. Whatever happens, if Bitcoin lives on in China, it will only be because the Chinese government allows it to do so. Bitcoin can only live and grow with tolerance, if not outright approval of established political and financial powers. An interesting intellectual exercise for any of those who still equate Bitcoin with freedom from big governance and the bankers who control big governance.