No. The exchange is not "banned". It's still allowed to run and I'm sure they may try some loop-holes to get around this. For example, the chinese government have said nothing about depositing to the exchange via cash so that may be an option for them.

Admittedly my personal opinion is that this is a first step by the Chinese government towards dealing with the problems Bitcoin causes for their oppressive of currency controls, how exactly they are going to do that we don't know, but as of right now the Chinese government have shown no intention at all to "ban" or "shutdown" the Bitcoin exchanges.