Interesting to note how quickly greed makes people willing to trust a communist government. "I'll just send my bitcoins to China for a quick gain in the market, trade all they want and then mysteriously can't get their funds out." I am willing to accept I'm paranoid but I'll skip that honeypot in favor of peace of mind.
You could be right, it could be a honeypot though that thought had not crossed my mind..
I don't trust the volumes or prices being reported from that exchange.. there is no proof that there is anyone in China buying and its not just the exchange operator pumping up the price hoping other exchanges follow the price up..