Wrong.  The problem was a technical one:  the payment processor the china bitcoin exchanges used to xfer to the banks can no longer trade bitcoin.  So the exchanges scrambled to come up with alternatives.  Two of the china exchanges started accepting RMB again from banks and wire transfer already today (huobi.com and chbtc.com), and btcchina is expected to have their solution ready soon, per their website.

Once again people panic sell on rumor and FUD.

So, I suggest loading up on cheap bitcoin before the news trickles out to the world that China did not, in fact, ban bitcoin !