Police in Taiwan deny knowledge of yuan counterfeiting

Taiwanese police yesterday rejected mainland media reports that high- quality fake yuan banknotes found on the mainland had originated in Taiwan.

'We have not found any counterfeiting groups producing those fake notes ... in Taiwan through comprehensive investigation so far,' said a spokesman with the economic crime department under the National Police Agency.

His comments came after mainland media reported that Taiwan had recently cracked down on a counterfeiting ring faking the bills bearing serial numbers starting with either HD90 or HB90, said to be in wide circulation on the mainland.

All major mainland websites reported the story and blamed Taiwan for the problem.

High-resolution yuan banknotes have recently appeared in more than 12 provinces and municipalities on the mainland and have fooled many people.

Fearing social unrest, mainland authorities have responded, with the People's Bank of China, the central bank, issuing a chart to teach the public how to spot the fake notes. But so far, mainland police have not been able to identify the source of the fake notes.

A Taiwanese official acknowledged yesterday that police had raided a yuan counterfeiting ring in October, confiscating more than 135 million yuan worth of fake banknotes. But he said those notes' serial numbers did not start with HD90 or HB90.