he Chinese currency is called Renminbi, or RMB, which means "people's currency", and is divided into three parts: yuan, jiao and fen. Ten jiao equal one yuan and 10 fens make up one jiao. There are notes of 1, 2, 5, 10, 20, 50, and 100 yuan, and 1 yuan coins. Jiao also come in note form: 1, 2, 5 and as coins; there is a brass coin for 5 jiao and a thicker aluminum coin for the 1 jiao.
Fen is always in coin form, small thin aluminum pieces that are virtually useless in the larger cities. If you should come across them they are in denominations of 1, 2, and 5. China is in need of notes of larger denomination, because there are items that you want to purchase that cost hundreds or thousands and you will have to carry stacks of 100 RMB notes.
Practically, however, when you discuss prices you will hear and use different names for the various units. A yuan is generally called ¡°kuai¡±. Kuai actually means ¡°lump¡±, and originates from the times when people used lumps of silver for payment. Jiao are always called ¡°mao¡± in spoken Chinese, and the word ¡°fen¡± is dropped, so 2.55 RMB is actually said 2 kuai 5 mao 5. If you said 2 yuan 5 jiao 5 fen nobody would understand what you were talking about, nor would they understand 2 yuan 55 fen.
The RMB has limited convertibility against foreign currencies. It is not traded on international money markets, but can be bought in China, Hong Kong and in parts along the Chinese border. When you change foreign currency to RMB, you should save the exchange receipts.
These can be used if you need to convert back to foreign currency, but please note that only receipts for the previous six months can be used for this purpose. You can find the official exchange rate published in the ¡®China Daily¡¯. Most hotels and other non-bank exchange centers will apply the Bank of China official rate.
Chinese Banks
Expatriate banking can be done through certain branches of the Bank of China and CITIC Industrial Bank. There are some other Chinese banks, but they do not always have the facilities to carry out transactions for expatriates. However, the head/main offices are most familiar with transactions requested by expatriates and have the funds available to conduct large transactions easily.
Banking hours are usually 9.00 to 12.00 and 13.00 to 16.00 Monday through Friday. Some branches have slight variations in business hours. In March 1995, the State Council introduced a five-day working week, which means that Chinese organizations have gradually moved towards closing on Saturdays.
Addresses to conveniently located branches are as follows:
Bank of China Shanghai Branch |
Bank of China |
Bank of China |
CITIC Industrial Bank Shanghai Branch |
The Bank of China offers both individual and corporate accounts. Many different currencies may be deposited: US dollars, Pound sterling, Euros, Japanese yen, Hong Kong dollars, Chinese Renminbi and others.
Individuals can open two kinds of account, which require only completed signature card and passport identification. A savings account can be opened with a RMB 10 deposit. For a fixed deposit account the initial minimum deposit is RMB 100. Deposits can be for three months, six months, one year or two years. There are no bank charges for money withdrawn in RMB whereas for more than USD 10,000 the bank charge is 0.3%. For any of these accounts bring identification if you want to make any transaction.
If you would like to empty your Bank of China account, you will need to bring your ID card, passport and deposit book and instruct the bank to clear your account. According to the bank, this will entail no charge unless you wish to transfer it directly to your home country account and that will cost one dollar per thousand. There is a minimum charge of RMB 20 and a maximum charge of RMB 250.
The bank charge to cash a check in hard currency is one dollar per thousand, with a minimum charge of RMB 20 and a maximum charge of RMB 250. You need an approval from the Foreign Exchange Bureau to make cash withdrawal of more than USD 1,000. Charges for sending a wire transfer are one dollar per thousand plus cable fee. The cable fee for Hong Kong is RMB 80; wire transfer to the rest of the world is RMB 120.
The usual banking functions are available, but the banking system in China is rather slow and there are some restrictions. For example, if you are withdrawing over USD 5,000, you must provide the particular branch with 24 hours¡¯ notice so that they have time to transfer the required cash amount to their branch. Such a notice is required as well with the head offices. If you are cashing a bank draft drawn on a foreign bank the bank will accept the draft and ask you to come back in one month¡¯s time to collect the funds.
CITIC Industrial Bank offers corporate and individual accounts. Currency deposited may be in US dollars, Pound sterling, Euros, Japanese yen or Chinese Renminbi.
Individuals can open current, negotiated and savings accounts. While a current account accrues an interest rate of 2% without an initial deposit, a savings account requires an initial deposit of USD 100 and interest rate depend on period of time money is invested and currency. If you open a negotiated account, the depositor and bank agree to the deposit¡¯s maturity rate, amount and interest rate. The initial deposit amount may not be less than the equivalent of US 20,000.
Regarding the withdrawal of funds, the bank does not charge any commission. Cash can be drawn on an American Express credit card without any bank charges. If you have a bank account and are depositing a check or a bank draft drawn on a foreign bank, it will take the bank two to three weeks to verify the check and to credit your account. You will then have to deposit the money in your account for a further three months. It is possible to do it quicker, but entails paying a higher commission to the bank. If you withdraw more than USD 10,000, you must give the branch concerned 24 hours¡¯ notice so they have time to transfer the required cash amount to their branch. The bank charge for preparing a bank draft is RMB 20-RMB 250 and charge for sending a wire transfer is RMB 24 or RMB 80. You can also buy travelers¡¯ checks at CITIC; the bank charge is 4%.
Foreign Banks
HSBC offers both corporate and individual accounts; currency deposited may be in US dollars, Pound sterling, Euros and Japanese yen. Individuals can open current and fixed deposit accounts. A current account accrues no interest and the client is required to make an initial deposit of USD 5,000. Individuals now can also open a statement saving account, which accrues interest with a minimum deposit of 200 USD.
HSBC has extended the automated teller machines (ATM) network to Beijing, Dalian, Guangzhou, Shanghai, Shenzhen, Tianjin and Xiamen. This means that you are able to use your ATM card, credit cards and other account cards from HSBC at ATMs in these cities.
Through ATMs set up at HSBC branches, you can now access a full range of self-service banking facilities, which enable you to:
- withdraw RMB cash through the HSBC ATMs in Beijing, Dalian, Guangzhou, Shanghai, Shenzhen, Tianjin and Xiamen up to maximum of RMB3,000 for each transaction and up to a daily maximum equivalent of HK$ 10,000 (HK$ 20,000 for HSBC Premier, PowerVantage and Business Vantage customers)
- withdraw Hong Kong dollar cash through the ATM at Guangzhou and Shenzhen branch up to a daily or single withdrawal maximum of HK $10,000
- perform funds transfers
- obtain up-to-date balances of your account(s)
- request cheque-books or your account statement
To further facilitate your banking needs in mainland China, HSBC has linked its ATM network with the Industrial and Commercial Bank of China¡¯s (ICBC) ATM network in Guangzhou and Shanghai. This network allows you to withdraw RMB cash and check account balances through ICBC ATMs in both cities.
With the enhanced ATM network in Mainland China, you no longer need to carry large amounts of cash while in Beijing, Dalian, Guangzhou, Shanghai, Shenzhen, Tianjin and Xiamen. In addition, you can save the time usually spend exchanging RMB at a bank counter.
Regarding the withdrawal of funds, if a customer withdraws foreign currency, the bank charges a commission of 0.5%. If you are withdrawing more than USD 5,000, you must provide the particular branch with 24 hours¡¯ notice so that they have time to transfer the required cash amount to their branch. For any of these accounts bring identification.
If you wish to empty your HSBC account, take your ID card, passport and deposit book and instruct them to clear your account. According to the bank, this will entail no charge unless you wish to transfer it directly to your home country account, which will cost USD 20-30.
If you have a bank account and are depositing a check drawn on a foreign bank, it will take the bank between three days and three weeks to verify the check and credit your account. Bank charges are 24-80 plus cable charges.
Standard and Chartered Bank offers corporate and individual accounts. Currency deposited may be in US dollars, Euro, Pound sterling and Japanese yen. A current account for an individual requires a minimum deposit of USD 5,000 and accrues no interest.
The minimum daily balance is also USD 5,000 and a service fee in lieu of minimum balance for USD 50 will be automatically debited from your current account if the daily closing balance on any day during that month is less than the minimum balance.
Individuals can also open fixed deposit accounts. In this case the minimum deposit is 10,000 USD and you cannot withdraw any money for at least one week.
Regarding the withdrawals, if you wish to withdraw over USD 2,000 you must give the bank one working day notice, while if you wish to withdraw over 10,000 USD you should give them 3 working days notice. Cash drawing commission is 0.4% for foreign currency and 0.25% for RMB.
When cashing a bank draft drawn on a foreign bank, the bank will accept the draft, but there is a two to three week waiting period before the funds can be collected.
If you have a bank account and are depositing a check drawn on a foreign bank, it will take the bank about one month to verify the check and credit your account. Bank charges for cashing a check is 0.125%; minimum charge USD 25 plus telex charge/postage. Bank charges for preparing a bank draft are 0.0625% of the amount of the draft; minimum charge USD 10/HKD 25, and charges for sending a wire transfer are USD 10-15. Standard Chartered Bank does not accept cash drawn on credit cards.