Yes, my inlaws kept the money given by Chinese relatives. For the American's that attended, we kept the money. One of the reasons why my in-laws invited so many Chinese guests is because in the past they attended their relative's wedding, and gave money to them. Think of it as a "I did it for you, now you need to do it for me" mentality.
What you posted is a relatively common custom
What my husband said is true. but for the second question , we both have never heard of it.
If you are doing "modern-traditional" Chinese way, then you will have to "knock the door of the bride", and her friends will ask you a lot of silly questions. you need to pay them off by sliding the small red envelope under the door. (usually only 20 or 30 kuai in each envelope). I don't know if this is what you are talking about.
In China, the traditions are different in different places, hope this can help you some.
Wedding Banquet Traditions
in Culture & Language Discussion
Posted
What my husband said is true. but for the second question , we both have never heard of it.
If you are doing "modern-traditional" Chinese way, then you will have to "knock the door of the bride", and her friends will ask you a lot of silly questions. you need to pay them off by sliding the small red envelope under the door. (usually only 20 or 30 kuai in each envelope). I don't know if this is what you are talking about.
In China, the traditions are different in different places, hope this can help you some.