Hi,
I will study in Hong Kong next near and now the university want me to pay some deposit money. The only way for me to do this according to them is to issue a bank draft in the university's name. Yesterday I was walking around, asking different banks if this is possible, but no luck. ICBC told me that they cant issue checks in foreign currency for individuals. Bank of China gave me some stupid answer that since I was a foreigner I cant exchange more than 500RMB every day (sounds highly unlikely), Hang Sung just said no, same with citibank.

So anyone know how I can solve this? I guess my best bet is to go together with a Chinese national, but then I'm not sure if I can issue the check in my name.

Bank of China was right, you can't exchange more than USD500 a day as a foreigner (unless your provide tons of documents).

Bank of China should be able to help you issue a cheque for the university, but you need to come up with the value in foreign currency. It is not like you just go there with loads of RMBs and expect them to issue a cheque in HKD or USD.

i think bank drafts can be issued, but not checks.

glutto wrote:Hi,
I will study in Hong Kong next near and now the university want me to pay some deposit money. The only way for me to do this according to them is to issue a bank draft in the university's name. Yesterday I was walking around, asking different banks if this is possible, but no luck. ICBC told me that they cant issue checks in foreign currency for individuals. Bank of China gave me some stupid answer that since I was a foreigner I cant exchange more than 500RMB every day (sounds highly unlikely), Hang Sung just said no, same with citibank.

So anyone know how I can solve this? I guess my best bet is to go together with a Chinese national, but then I'm not sure if I can issue the check in my name.

Both ICBC and Bank of China can issue foreign currency cashiers checks / bank drafts without any restrictions as long as you have the foreign currency in hand to give them. The Chinese term for this service is D/D or demand draft. The fee for this service is actually quite low -- approximately 60 RMB.

The problem you will face is how to convert your RMB into foreign currency and this topic has been discussed ad nauseam in the Visa, Taxes & Legalities forum.

8lrr8 wrote:i think bank drafts can be issued, but not checks.

Actually, I always wondered what the difference is between a draft and a check.

^ its my belief a draft is a "check" that's issued by the bank itself. that is, the funds are, in theory, backed by the bank. the bank is saying "we, as the bank, have enough funds in our accts to cover the amt written on this piece of paper."

short version: a bank draft's funds should never have the risk of bouncing (unlike a check). in theory. altho it still takes several days to "clear the funds" from a bank draft after u deposit it. go fig.

Thanks for all the useful replies. So the best bet would be for me to get a Chinese national to exchange the money for me (it's only 10k HK$). And then I can go back to ICBC or Bank of China and issue the bank draft? Guess there are no restrictions for Chinese nationals to exchange money in these amounts.

Did not know about the 500usd limit every day by the way, maybe that's why I met some Russian guys outside a nightclub last week that asked me if I was interested in buying Euros!

And regarding the limited knowledge of English in the banks, what is it that I'm looking for: D/D or demand draft, is there any Chinese term for this, my dictionary translates the term bank draft to 银行汇票?

8lrr8 wrote:^ its my belief a draft is a "check" that's issued by the bank itself. that is, the funds are, in theory, backed by the bank. the bank is saying "we, as the bank, have enough funds in our accts to cover the amt written on this piece of paper."

short version: a bank draft's funds should never have the risk of bouncing (unlike a check). in theory. altho it still takes several days to "clear the funds" from a bank draft after u deposit it. go fig.

You could be right.

I always use the term cashier's check.

glutto wrote:And regarding the limited knowledge of English in the banks, what is it that I'm looking for: D/D or demand draft, is there any Chinese term for this, my dictionary translates the term bank draft to 银行汇票?

Bank of China and ICBC refer to this as D/D.

When you get the remittance form there are two boxes from which to choose. One is T/T (Telegraphic Transfer) and the other is D/D (Demand Draft).

I would not try and confuse them with your poor Chinese. Tell them you want to send money abroad. Show them your cash. Check the box for D/D on the form.

By the way, I would buy Hong Kong dollars from your black market contact. If you bring in US$ then you will pay the commission when they utlimately have to change those US$ into HK$ before issuing your demand draft.