Found this after I wrote the first response to this. From B Berg says basically the same thing i did. Also the guy who was quoted is not an official of the Chinese treasurie or Central Bank. There are a lot of loose cannons in China and when the media puts this stuff out it usually creates a momentary panic in the market but you gotta sort through this crap and not get burnt.
http://www.bloomberg.com/apps/news?p...d=a9_E9yIQIBAU