I think it will help with volatility on the Chinese exchanges.

According to the Bloomberg article they are going to stop all margin trading, short selling and add fees.  

http://www.bloomberg.com/news/2014-05-06/china-s-bitcoin-exchanges-pull-out-of-summit-after-pboc.html

Cutting off the fiat flow, adding fees and no margin buying/selling should drive down the volume down. I am not familiar with the business model for the Chinese exchanges, but I am assuming their revenue model was based on commissions on margin trading and short-selling. The question is will the fees they will now charge be enough to be profitable?