Exactly! NEO lost about half of its price due to this, which was expected from this kind of news. Currently what I'm seeing is that some ICOs are banning Chinese IP Addresses from participating and are editing their Terms of Service to exclude Chinese participants. I still don't know how the refunds will play out, though.
The entire crypto market took a hit because of this, including Bitcoin, because of China's aggression.
RE: Market Update: China Made ICOs Illegal, Bitcoin Declining, Crypto Market Dwindles