A batch of high-quality fake 100 yuan (US$14.50) bank notes is in circulation on the mainland, state media reported.

The fake money, which cannot be identified by older counterfeit-cash detectors may be from Taiwan, as police on the island cracked a six-member counterfeiting ring, seizing 100 million yuan in fake notes on October 8, according to Fujian-based Southeast TV.

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.

Most of the fake notes were reported to have serial numbers starting "HD90."

They have been discovered in a dozen mainland provinces, including Hunan, Hubei, Zhejiang, Sichuan, Guangdong, Fujian, Henan and Yunnan.

People's Bank of China, China's central bank, notified banks in Chongqing Municipality in October to upgrade their detectors to pick up the fake notes.

Southeast TV said the fake notes had been sold online for 18 yuan each. The price for a bundle of 10,000 yuan was 1,500 yuan.

Previous buyers had left messages on the Website saying the quality of the notes was good and there was no problem using them.

A Netizen who received some six months ago said even experienced cashiers could not tell they were fakes.

(Shanghai Daily January 8, 2009)