The fiat fiat gateway! Fantastic work
How are they going from bitCNY -> CNY, or do they hold bitCNY?
Forum member @gulu launched a bitcny<-->cny gateway allowing 1:1 exchanges two weeks ago (with no fees at this moment).
Everyday btc38 sends bitcny via blockchain to gulu who then sends back btc38 the cny via banks. Probably btc38 won't hold bitcny unless they also want to launch a gateway.
You can find gulu's site here (now only available in Chinese):
http://www.tradebts.com/Thank you, gulu and btc38.