CNH
CNH is the market convention used to identify renminbi traded and held outside Mainland China, particularly in Hong Kong. CNH is not a separate sovereign currency or an independent ISO 4217 currency code.
CNH is the label dealers and banks use for renminbi priced and traded outside Mainland China. The offshore market developed in Hong Kong from 2010, as authorities allowed renminbi to be held and traded there, and Hong Kong remains its largest centre. The "H" is a market convention; payment messages still use the ISO code CNY, and the currency is the same renminbi.
What makes CNH different is the market, not the money. Offshore renminbi is traded freely between banks outside Mainland China, without the onshore daily band, so its price responds to offshore supply, demand and funding conditions. It usually stays close to the onshore rate, but the two can diverge, particularly when markets are stressed or expectations about the currency change.
For a foreign company, CNH is usually the market its bank or payment provider buys from when it funds an RMB payment from abroad. Holding CNH in Hong Kong does not give access to Mainland accounts; moving it onshore still requires a permitted channel and supporting documents. The guide to Hong Kong and offshore RMB explains how the two markets connect.
In practice
CNH is not a way around Mainland controls. Offshore renminbi reaches a Mainland account only through permitted cross-border channels, with the same documentary expectations as any other trade payment.
Commonly confused with
| Term | How it differs |
|---|---|
| CNY | CNY is the official code and the onshore market inside Mainland China. CNH is the offshore market convention for the same currency. |
| Offshore RMB | Offshore RMB describes the money held outside the Mainland; CNH is the label for its offshore exchange rate and trading market. |
See also
- RenminbiRenminbi is the official name of the currency of the People’s Republic of China. RMB is the common abbreviation, while yuan is the unit in which renminbi amounts are counted.
- CNYCNY is the official ISO 4217 currency code for renminbi. In financial-market discussions, CNY also commonly refers to the onshore RMB market and exchange rate inside Mainland China.
- Offshore RMBOffshore RMB is renminbi held, traded or financed outside Mainland China, most prominently in Hong Kong. It gives international businesses access to RMB liquidity, but it does not provide unrestricted access to Mainland accounts.
- CNY–CNH SpreadThe CNY–CNH spread is the difference between the onshore and offshore RMB exchange rates. It can reflect differences in liquidity, market expectations, funding conditions and restrictions on movement between the two markets.