I see there is some confusion about the old knysna seahorse breeding project. As far as I can remember, Knysna seahorses were once bred for research purposes at the ichtyology section in Grahamstown, very successfully. Bayworld, East London Aquarium, Two Oceans, uShaka and Pretoria National Zoo supplied each other and received some from the breeding project to display or introduce new genes to their own captive breeding stock.SA National Parks (Knysna Lagoon being in a National Park) would not allow any further collections from the wild as the breeding success at the various institutions was successful enough to not need collection from the wild. The specimens from Grahamstown were moved to another project at Port Nolloth where they were bred for a while. That population is no longer sustained.
Knysna seahorses were not bred for the traditional Chinese market as far as I am aware, in fact I heard indirectly that they are not suitable as they are the wrong shape and size.