The Chinese currency is called Renminbi （abbreviation of RMB）and is issued by the People's Bank of China. The basic unit of Renminbi is the yuan and the smaller units are the jiao and fen. One yuan can be divided into 10 jiao and one jiao can be divided into 10 fen (10 fen=1 jiao, 10 jiao=1 yuan). Yuan, jiao and fen are issued both in bills and coins. The banknote has the following denominations: 1,2, 5, 10, 20, 50, and 100 yuan; 1, 2 and 5 jiao; and 1,2 and 5 fen. Coins include 1 yuan coin and 5 jiao cion, 2 jiao coin, 1 jiao coin and 5 fen coin, 2 fen coin and 1 fen coin. But fen banknotes and coins are seldom used in china nowadays. If you happen to find fen paper money and coins, you can keep it as souvenir.

After you come to china, you can convert your currency into RMB at all banks, bank branches or hotels according to the exchange rate on that day. The State Foreign Exchange Administration announces the exchange rates on a daily basis.
Black market in foreign currency is forbidden in China. Sometimes you can meet people in front of hotels, at tourist spots or at banks who want to have a deal with you for a black market exchange. The exchange rate they offer is always higher than the bank rate. But you should be extremely careful because it is illegal and you risk being cheated. Sometimes these people don't give you the right amount, since you don't have time to count the money or, even worse, they may give you fake notes or a bundle of plain paper with a few notes on the top.
The following foreign currencies can be cashed into Renminbi in China: ( US dollar, British pound sterling, French franc, Deutsche mark, Japanese yen, Australian dollar, Austrian schilling, Belgian franc, Canadian dollar, Hong Kong dollar, Swiss franc, Danish krone, Dutch guilder, Norwegian krone, Swedish krona, Singaporean dollar, Thai baht, Spanish peseta, Malaysian ringgit, Italian lira, Macao pataca, Finnish markka, and Euro).
You can have your surplus amount of Renminbi changed back into foreign currency and take it out of China within a grace period of six months prior to departure from China, but in doing so you have to show a foreign currency conversion receipt. So when you exchange the money, better keep the receipt every time.

The following foreign credit cards are acceptable in China:
(1) Master Card; (2) Visa Card; (3) American Express Card; (4) JCB Card; and (5) Diners Card.
Card-holders may draw cash at the Bank of China or conversion centers designated by the Bank of China, or pay for their expenses at department stores, restaurants and hotels where credit cards are acceptable. You can also pay by credit card in large souvenir shops that the guide will take you for visit if you have some free time after sightseeing. Credit card symbols are displayed in the visible place in shops indicating credit cards are accepted. But most department stores and super markets in china do not accept credit card. So when you are prepared for shopping, better exchange some Chinese money and take with you.