Considering that China is desperatley fighting against capital outflow and it has some problems of huge private debt and unstable banking system, yes, reducing capital outflow banning bitcoin was a good idea.
They will reintroduce exchanges, but with strong fiscal regulation to identify money flows.
http://www.zerohedge.com/news/2017-08-07/chinas-reserves-continue-decline-capital-outflows-accelerate-outbound-travel-spendin