Yanhui Hong was nabbed from Tribhuvan International Airport while she was about to board a Sichuan Airlines flight to Chengdu, capital of Sichuan province.
The amount, including USD 98,500, 20,520 Chinese Yuan and 13,115 Nepali Rupees, was concealed in hollow area of a pipe connected to the handle of the luggage after wrapping it in a paper, My Republica reported.
She managed to smuggle the currency unnoticed at initial checking but was caught during the final security check.
It was Yanhui's second visit to Nepal and she had entered the country on May 22.
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