CNY and CNH: why the yuan trades at two different prices
Posted: Sat Oct 31, 2026 11:27 pm
China has two yuan markets. CNY trades onshore under a daily fixing and a band, while CNH trades offshore, mostly in Hong Kong, with fewer restrictions. The two prices differ, sometimes by a few hundred pips.
For anyone trading USDCNH, the offshore price is the one that matters. It reacts to global sentiment quicker and can spike at times when onshore is closed. Spreads vary greatly across brokers, and liquidity thins out outside Asian hours.
The gap between CNH and CNY works as a sentiment gauge. A large premium suggests pressure on the currency. Central bank actions in Hong Kong, such as tightening liquidity in the offshore market, can create sudden spikes that last minutes.
For scalpers, the pair behaves oddly: long quiet stretches interrupted by sudden moves, a lot of mean reversion intraday, and big differences between brokers' quotes.
The daily fixing, set before Asian markets open each morning, can move USDCNH noticeably in the minutes after its announcement.
Is USDCNH worth trading at short horizons, or are the quirks too costly?
For anyone trading USDCNH, the offshore price is the one that matters. It reacts to global sentiment quicker and can spike at times when onshore is closed. Spreads vary greatly across brokers, and liquidity thins out outside Asian hours.
The gap between CNH and CNY works as a sentiment gauge. A large premium suggests pressure on the currency. Central bank actions in Hong Kong, such as tightening liquidity in the offshore market, can create sudden spikes that last minutes.
For scalpers, the pair behaves oddly: long quiet stretches interrupted by sudden moves, a lot of mean reversion intraday, and big differences between brokers' quotes.
The daily fixing, set before Asian markets open each morning, can move USDCNH noticeably in the minutes after its announcement.
Is USDCNH worth trading at short horizons, or are the quirks too costly?