The FUD over the China ICO ban seems to be over. After causing a global panic on Monday with the announcement of an ICO ban, a Chinese official has clarified the position saying that China will look to resume ICOs in the future after establishing licensing regulations. This was done via an interview on CCTV-13, a national television channel in China. When asked about whether the ban could stop innovation in the Blockchain Space, the official responded that this was not the intention of the ban and it was meant to protect investors.
Check a (poor quality) video recording of the CCTV-13 interview:
Of course, this is a TV interview and may not represent the opinions of all the policy makers were involved in the decision process. But as it stands it seems like ICOs will be back in some form or the other.