Chinese currency is formally called yuan (¥), more colloquially known as kuai , and breaks down into units of ten mao or jiao , and one hundred fen - though these latter are effectively worthless and you'll only ever be given them in official currency transactions, or see the tiny yellow and green notes folded up into little twists and used to build model dragons or boats. Paper money was invented in China and is still the main form of exchange, available in ¥100, ¥50, ¥20, ¥10, ¥5, and ¥1 notes, with a similar selection of mao. You occasionally come across tinny mao or fen coins , and rare brass ¥1 pieces. Be aware that at present China is suffering from a rash of counterfeiting . Fake notes are usually produced with colour photocopiers and are easy to tell as the paper feels different. A few years ago you were only likely to see fake ¥100 notes, but these days there are even fake ¥5 notes in circulation.

Hong Kong's unit of currency is the Hong Kong dollar (HK$), divided into one hundred cents, while in Macau they use pataca (usually written M$ or ptca), in turn broken down into 100 avos . Both currencies are roughly equivalent to the yuan, but while Hong Kong dollars are accepted in Macau and southern China's Special Economic Zones, neither yuan or pataca are any use outside China or Macau respectively. Tourist hotels in Beijing, Shanghai and Guangzhou also sometimes accept - even insist on - payment in Hong Kong or US dollars. Hong Kong dollars are available overseas, yuan and patacas are not, though both can be obtained in Hong Kong if you're going there first, and converted back at a bank before you leave the country.

At the time of writing, the exchange rate was approximately ¥13 to £1, or ¥8 to US$1.

Given the extreme regional variations, it's hard to make exact predictions of how much China costs on a daily basis. Wherever you are in mainland China , you should be able to keep your average daily budget for food and travel to a minimum £10/US$15 or so by eating in cheap and mid-range restaurants, and travelling on local buses or hard train classes. What really separates the east coast (including the whole of Dongbei) from the interior provinces, however, is the cost of accommodation . While budget travellers can find beds in Sichuan for as little as £1/US$1.5 a night, on the east coast it's hard to find anything for less than £30/US$45. Fast or comfortable travel also comes at a premium - flights and soft-sleeper berths are double the price of a hard-sleeper train berth and at least five times as expensive as covering the same route by bus. In general, by doing everything cheaply and sticking mostly to the interior provinces you can survive on £15/US$23 a day; travel a bit more widely and in better comfort from time to time and you're looking at £30/US$45 a day; while travelling in style and visiting only key places along the east coast you're looking at daily expenses of £50/US$75 and above.

There's also a certain level of price tiering in China, with foreigners and Overseas Chinese paying more than locals for some services. This used to include train travel, airfares and hotels, but now mainly applies to entry fees for museums and famous sites. One way around the latter is to get hold of a Chinese Student Card , which nets you substantial reductions at these places - they are vaguely official-looking documents, adorned with your photograph and folded into a small, red plastic wallet. You can get one officially by studying, however briefly, in China; unofficially, tour agents geared up to foreign needs can often supply them for about ¥40 and you can usually get them in the areas around backpacker hotels and restaurants. Bargaining is common practice throughout the land, at least in private dealings such as at markets, but isn't generally pursued with the same enthusiasm as in other Asian countries. Barter hard as foreigners are often charged more than ten times the local price.

Costs in Hong Kong and Macau are much higher for comparable services than on the mainland, particularly for upmarket accommodation - though food and drink are again pretty reasonable and transport expenses negligible. The cheapest dorm beds will set you back £6/US$9, while it's hard to come by a decent double room for under £60/US$90. Staying at cheap lodgings and eating simply from noodle stalls will cost you about £20/US$30 a day, up to £23/US$35 with a mid-range restaurant meal thrown in. For more comfort and classier food, budget from £80/US$120 and up.

Travellers' cheques , available through banks and travel agents, are the best way to carry your funds around; their exchange rate in China is fixed and actually better than for cash, and they can be replaced if lost or stolen - keep a list of the serial numbers separate from the cheques. On the downside, in mainland China they can be cashed only at major branches of the Bank of China and tourist hotels (though very few parts of the country have neither) and the process always involves lengthy paperwork. Stick to generic brands such as Thomas Cook or American Express, as less familiar, bank-issued travellers' cheques won't be accepted in smaller places.

In case you find yourself in difficulties, it's also worth taking along a small supply of foreign currency such as US, Canadian or Australian dollars, or British pounds, which are more widely exchangeable. There's a low-key and burgeoning black market in China for foreign currency, but the small profits you'll make and the risks of getting ripped off or attracting police attention don't make it worthwhile. Credit cards are useful too, with Visa, American Express, and Mastercard accepted at big tourist hotels, and cash advances on Visa issued quickly at many Chinese banks (however, the commission is a steep four percent). In Hong Kong, Shanghai and Beijing some ATM machines will take Visa cards. In an emergency , wiring money through the Bank of China will definitely take weeks even in Beijing, Shanghai or Guangzhou, and rates charged at both ends make it a poor option except as a last resort. If you think it is at all possible that you might have to use this route, make arrangements with your own bank before you leave home.

In Hong Kong and Macau , however, any bank or Bureau de Change will be happy to cash travellers' cheques or foreign currency notes, though rates and commissions are unpredictable (illicit interest is also often levied on credit card advances) and you always need to establish them first. Several bank ATMs in Hong Kong also have Cirrus-Maestro connections, which let you draw funds from your home account - check with your bank for details. Wiring money to Hong Kong is no problem. Any of the major international banks here can organize a transfer from your home bank to a specific branch in Hong Kong. It will take the best part of a day, though, and you'll be charged a handling fee. International companies, such as Western Union Money Transfer, can also handle the transaction for you and charge a percentage of the sum transferred.

Banks in major Chinese cities are sometimes open seven days a week, though foreign exchange is usually only available Monday to Friday, approximately 9am-noon & 2-5pm. All banks are closed for the first three days of the Chinese New Year, with reduced hours for the following eleven days.

In Hong Kong, banks are generally open Monday-Friday 9am-4.30pm, Saturday 9am-12.30pm, while in Macau they close thirty minutes earlier.