The China rumors are still not confirmed AFAIK.
What worries me is that people went crazy with selling, even though the previous "ban" news were confirmed to be fake. Fool me once...
the fud is related to the niave brainfart of people thinking that chinese people cannot trade bitcoins. the better understanding of the news is that chinese BANKS cannot have bitcoins as THEIR investment portfolio. this does not stop individals or private business from trading/using bitcoin