The examples used here are for the 100 Yuan note, but they can be applied to the other denominations too.
Paper Quality: The paper used to print fake notes is smooth and crispy. Also when you ruffle the note the sounds made by the real and fake notes would be different. Hold the note the long way up and ruffle it in your hands, the sounds should be clear and distinct whereas the fake ones would emit a muffled sound. Also the fake notes will not glow when placed under an ultraviolet light.
Water Mark: When you hold up the note in the light on the left hand side in the empty white space you should see a clear picture of Chairman Mao’s face. On the fake notes the picture of Chairman Mao will not be very clear and somewhat blurred.
The 100 in the top right hand corner: On the top right hand corner of the note, there is a 100 and just below that there is a kind of oval pattern. If you hold the note sideways and place it in a position where the light shines on it, you will see a 100 appear in the oval. If there is no 100, or it is really hard to see, then your note is a fake.
The picture of Chairman Mao: If you rub your finger gently against the collar of the portrait of Chairman Mao you should be able to detect a slight difference in the feeling and texture. You will probably only notice the difference if you rub lightly, so be careful you don’t damage or rip your money. If the paper is smooth and there is no difference in texture, then the note is a fake.
Colour Change: In the bottom left hand corner there is a 100 sign. When you hold the note normally the colour is green. However, when you tilt the note upwards the colour of this will change to a sort of blue colour. If your note does this, then it is real but if there is no real change in colour then I am afraid you have a fake bill.