Perhaps I have not thought through all of the ramifications of this (or are even informed enough to know what those are)...but I'm not sure what immediate impact this "should" have on Bitcoin value (understanding that it isn't a very deep market and subject to psychological whims).

Obviously this makes it more difficult for Chinese citizens to buy more Bitcoin...but that shouldn't be devastating. Given the tight monetary fist that the Chinese government has over the economy there...I don't see any Chinese that already own Bitcoin rushing to sell them off given how facile they make for getting money out of the country (and thus the reasons I would imagine for the government clamping down if this story is true)?