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
The problem is most bitcoin traders dont even understand China's culture. Chinese are very scared of keeping the yuan. Most of them put their saving into asset or gold. However it will be a problem when they immigrant to Western countries. They cant bring their wealth. Several of my Chinese friends told me, they couldnt bring their wealth with them so they had to pay ridiculous fee to use some third party money transferring service in HK.
This is where Bitcoin comes in handy
But realistically, it seems that the PBOC will not be enacting anything this week. We're probably safe til China Monday morning now.