Wouldn't surprise me either but with China's dominance in the market in the past month and the hope it instilled in Bitcoin believers and investors I think this will be a sizable setback in the progression and acceptance of Bitcoin.
It is weird that they have harped on about getting over the $ dominance, but as soon as they see a tool to do that, they start banning it (ironically before the USA does.)
China does not appear to have banned BTCs. They have banned payment processors, AFAIK. It also appears that BTC China's own bank accounts are still open.
IMHO, China is worried about funds outflow to the ROW via Btcs, possibly damaging the Chinese economy.
Can China ban people from directly buying Btcs from BTC China next? Maybe. That is the unknown and also I don't know how the market would respond. For example, will Btc go underground in China?