What is the difference between CNH and CNY?

China plays a central role in global trade, making it a key market for many internationally active businesses. Companies trading with China often encounter two versions of the Chinese currency: CNH and CNY. Understanding how they work and having access to both helps avoid confusion in payments and pricing and makes it easier to work with a wider range of suppliers and customers. 

How CNH and CNY work in onshore and offshore markets 

Transactions with China can involve two versions of the yuan: CNH and CNY.  

The currency is formally called renminbi (RMB), while the yuan refers to its unit. In practice, however, it is commonly referred to as the yuan in everyday business. 

While CNH and CNY refer to the same currency, they operate in different environments. CNY is used within China and managed under specific regulatory conditions, while CNH (with the “H” referring to Hong Kong) developed as an offshore version of the renminbi to support international trade, initially through Hong Kong, and is now more freely traded outside China.

Funds can generally be transferred between CNH and CNY at close to a one-to-one level, although the exact rate may vary slightly. 

CNH and CNY have different exchange rates 

Because CNH and CNY are traded in separate markets, their exchange rates against other currencies can differ. The onshore rate is influenced by domestic policy and capital controls, while the offshore rate is shaped more directly by global supply and demand. This is one of the key differences between CNH and CNY. 

In stable conditions, the difference between the two exchange rates is often limited. However, during periods of market tension or uncertainty, the gap can become more noticeable. 

For companies, this means that the cost of a transaction may vary depending on whether it is executed in the onshore or offshore market, and whether the payment is made locally or through international transfers involving additional conversions. 

China is increasing the global use of the yuan 

In international trade with China, the US dollar has traditionally been the main currency used for cross-border transactions. However, this is gradually changing.

Over the past years, China has been promoting the use of the yuan in international trade and cross-border payments to reduce its dependence on the US dollar. 

Today, a growing share of China’s international trade is already conducted in yuan, and this trend is likely to continue as more partners adopt it in cross-border transactions. 

Access to both CNH and CNY can make a real difference 

If you are importing from China, access to both CNH and CNY can make a real difference in pricing. Using both versions of the yuan allows you to pay your suppliers in their local currency, which can secure better terms and expand your choice of partners.  

Some suppliers operate only in the onshore market and cannot accept offshore yuan (CNH). In these cases, access to CNY is essential to work with them and to align payments with local practices. It also reduces the need for multiple currency conversions - for example, converting from CHF to USD and then from USD to CNH or CNY, which can increase costs and make the final price of a transaction harder to predict. 

If you are exporting to China, accepting payments in yuan can make your offer more competitive and easier for local customers to work with. 

Limited access to CNH and CNY can create friction 

When companies start trading with China, the way they handle payments does not always match how their partners work locally. 

Not all banks and financial providers support both CNH and CNY. In fact, many don’t support the yuan at all. In these cases, companies may have to pay in another currency, such as US dollars. 

This can restrict how companies interact with suppliers and customers in China and, as a result, businesses may need to rely on intermediaries, accept less favourable terms or introduce additional conversion steps. Over time, this can increase costs and make operations more complex. 

For companies with growing exposure to China, these limitations can become a real constraint.  

How SwissFx supports companies trading with China 

SwissFx provides access to both CNH and CNY within a single platform, allowing businesses to manage payments without additional complexity. Companies can pay suppliers in CNH and hold and manage funds in CNY through a local account. 

This means businesses can pay and receive funds in the appropriate currency, reduce unnecessary conversions and manage cross-border payments with China more efficiently. 

By aligning payments with how suppliers and customers actually operate, companies can reduce costs, improve pricing and simplify processes, while maintaining smoother commercial relationships.