An undated photo shows fake 100 yuan (US$14.5) banknotes with serial numbers starting with "HD90." [Photo: hangzhou.com.cn]

China's central bank has denied that most counterfeit-cash detectors in the country can not identify a batch of so called "high quality" fake 100 yuan (US$14.5) banknotes with serial numbers starting with "HD90."

State media reported the fake banknotes are in circulation on the mainland and that some have been seized by police in Hong Kong. Panic occurred after people were told that those fake banknotes could easily pass undetected by counterfeit detectors or ATMs.

The Shanghai headquarters of the central bank said no reports have surfaced about the fake notes being used in the city.

The People's Bank of China said the fake notes could be indentified with the naked eye as the quality was not as good as media reports said.

A dozen ways, including via ink or water marks, could be used to identify the fake bills, PBOC officials said.

It also said that a 100 yuan banknote with a serial number starting with "HD90" doesn't necessarily mean it is fake.

People on Tianya.cn, China's most popular online forum, said that banknotes with serial numbers starting with HB90, WJ135, FA, AB77, AB88 or AB99 may also be counterfeit.

Police in the Hong Kong Special Administration admitted that they had seized fake banknotes starting with the serial number HD. All could be indentified by counterfeit detectors, Hong Kong police said.

Early media reports said the fake money may be from Taiwan as police on the island cracked a six-member counterfeiting ring. They seized 100 million yuan in fake notes on October 8, according to Fujian-based Southeast TV. Most of the fake notes were reported to have serial numbers starting with "HD90."

The ring was reported to have been producing the notes for some time. An unidentified source said fake bank notes had already made their way on to the mainland.

(Shanghai Daily January 9, 2009)