The confusing thing to me is why the price of a bitcoin went DOWN on btcChina (compared to other exchanges) MtGox, which has had a long history of problems with bank transfers, actually carries a btc price premium (because fiat currency on MtGox isn't very liquid, you have to pay more fiat to buy a bitcoin there) so this whole situation is just confusing.
I think the most likely reason why BTCChina prices have reached parity with other exchanges is simply that the recent selloff has actually temporarily improved RMB liquidity in BTCChina accounts, since folks are stashing RMBs in their BTCChina accounts as they wait to jump back into the market.
...so despite the new Chinese government rules that should lower RMB liquidity, the markets seem to say that BTCChina RMB liquidity is actually pretty good for the time being.
Because the report about the Chinese exchanges being cut off appears to have been complete BS. There never was any problem but the false news caused a panic sell by people who didn't bother to think it through logically.
I think the most likely reason why BTCChina prices have reached parity with other exchanges is simply that the recent selloff has actually temporarily improved RMB liquidity in BTCChina accounts, since folks are stashing RMBs in their BTCChina accounts as they wait to jump back into the market.
...so despite the new Chinese government rules that should lower RMB liquidity, the markets seem to say that BTCChina RMB liquidity is actually pretty good for the time being.