Worst case scenario (but perhaps most likely) is that this is a dead cat bounce in China.

But regardless, why are people buying BTC at all in China?

I have heard that they would buy it to arbitrage it? Ok, assuming they have a way to keep the money or move it back into China. I doubt, however, this is massive.

I have heard that perhaps they want to still own Bitcoin for black market trading. Possible I suppose, but certainly not widespread.

If I understand correctly, $0 money is coming into BTCChina. Am I right? If not where is money coming from? Because I can't wire money to BTCChina from the U.S.  So where can people send it from?

I just do not see how BTCChina continues to exist as it is with no new deposits coming from. And if people can't send fresh money, how the hell are they buying bitcoins?