Basically all bank accounts of exchanges will be closed, which mean traders cannot deposit fiat into exchanges. They must find another way such as cash deposit at exchange's office, this is very inconvenient method and trading volume will be reduced drastically.

The news is still a rumor, but currently there is no official information from Chinese banks to deny or confirm this rumor. The article was published on a reputable news service about finance in China, and it is now cited by Bloomberg, so the FUD is likely to be true.

It seem you are the only one here who haven't not researched enough.