It's increasing Bitcoin popularity in China, I suspect. And 81% of Bitcoin exchange volume is already in CNY (average for last 30 days). I'm guessing that the price will stay in the 420-450 USD range.
You can't rely on the self-reported volume figures from Chinese bitcoin exchanges. They are zero fee exchanges so it's very easy to inflate volume and there are many indications that that is exactly what they do.
OK, thanks. I have heard that before, now that you say so. Are there any credible estimates of how inflated they are? Is there any way to check against the blockchain?
Also, what's the incentive for inflating volume? Promotion?