I could understand the confusion, there is a lot of it these days because of different terminologies.
A cryptocurrency is not specifically a token, it is a token that acts as money. What China is saying is.... no no no.... you will not be creating new money and new tokens that act as money and new blockchains for our money. You can however create INVESTMENT tokens. (similar to the US saying cryptocurrency is okay but if it is an investment security it must register with the SEC - not pose as a cryptocurrency).
For the record, NOTHING I say should be taken as gospel. Please understand in most of my posts I try to stress to people I AM NOT YOUR INVESTMENT ADVISER. If you lose every penny you have listening to my advice - do not blame me!
Ohh, this clarification really helped :) thanks