That's right. The entire magazine is pushed forward, so that the string gets into a notch at the back of the magazine; the string going back, because the magazine being pulled back by the same lever that caused it to be pushed forward, means that there is nothing hindering the bolt from falling into the groove. The crossbowman pulls the lever all the way back, and a small peg knocks the string out of the notch in the magazine. Here are some pictures:
www.atarn.org/chinese/rept_xbow.htm. It also describes the mechanism. With diagrams and motions.
Apparently the bolts were quite small, light, with almost no fletching - nothing to jam the bolts. Anyway, go to the site (the whole
www.atarn.org site is good actually) and check it out - I have attempted making one once, but it was very crude and hardly worked, the lever was odd, the magazine was too small, the string jammed, as did the bolts, the bow was really light. In the end, I gave and threw it away. I might try to make another crossbow sometime.
Apparently the text on the site, and the images, are from "The Crossbow", by Ralph Payne-Gallwey, a book mentioned in other crossbow related threads.