If I was Chinese I'd be paranoid about getting my money out. I would never wait until the banks got completely shut down. I'd sell and get my cash back as soon as I could. That's the problem. The run on the bank didn't happen over night. That's going to take a little time.
How could someone in Shanghai with plenty of RMB in BTC China just leave it there? Hope is not a strategy.
Your right, I would buy Bitcoins with it and withdraw my Bitcoins to paper wallet.
Yeah that's a good point. Same thing with goes Mt Gox I suppose. You can still get your BTC out. Nevertheless, I can understand the panic over there and I have a hard time thinking that its over.