I think China is doing this again to dump the market so that they can hoard coins as much as they please because the prices are in their low position. They already did this before and they are doing it again. The people are spreading FUD because of their announcement. And like before, FUD is still an effective technique to make few people panic sell, making the prices go dipper. They take advantage of this opportunity to buy coins and store them until the bull market comes. They do not really intend to ban it permanently, but just to just make the market go red. Then they'll do their thing. After this, surely they will lift the 'ban' and release some sort of statement to justify what they did.
For those people who want to invest in crypto, this is one of the best timings because you can enter a low position. If you have the money, do your own research and invest while the prices are still low. I think the prices will still go lower for the following days. It's up to you whether you'll see this as a threat or as an opportunity. Be wise enough to decide.
It seems to me that China has done this so many times that everyone should already know about this manipulation and react to it as adequately as possible, without hasty actions and without panic selling. But every time we see the same thing, the market turns red, many panic and sell. Well, for me this is an additional opportunity to buy at a low price. It's good to follow the news, but in the information age, you need to be able to filter information and draw the right conclusions.