I see this as a buying opportunity. Similar to the previous announcement (ICO bank\halt). There are a lot of FUD and irrational behavior. A lot of crypto coins aren't even tied to China (e.g. omisego) yet they're following the same downward pattern. I suspect given the success of the previous announcement, e.g. massive sell off on ICO ban, only to pick up again shortly thereafter, a similar stunt was pulled here.

Crypto doesnt belong to China, although I'd admit their complete lack of participation will have a detrimental effect. Even if worst comes to worst we'll be back to where we were with their previous withdrawal restrictions.