1. Different market entities: The onshore RMB market entities are mainly central banks, domestic banks, large financial companies and domestic branches of foreign banks, while the offshore RMB market entities are mainly import and export enterprises, offshore financial institutions and hedge funds.
2. The degree of exchange rate fluctuation is different: onshore RMB is more affected by monetary policy, and basically fluctuates within a range, while offshore RMB exchange rate fluctuates relatively more, which is more affected by market supply and demand.
3. Different circulation ranges: onshore RMB refers to RMB circulating and stored in Chinese mainland, and offshore RMB refers to RMB circulating outside Chinese mainland. At present, the main offshore markets are in Singapore, London and other places.