You’ve just received a supplier invoice from Shenzhen quoted in CNH, and your finance system only recognises CNY. If you’re an established importer running recurring payments to Chinese manufacturers, this confusion can affect your landed costs, your reconciliation, and how much you actually pay every time you settle an invoice.
Singapore is one of the fastest-growing offshore renminbi hubs globally, with 9.7 trillion RMB in payments cleared in 2024. This means that more Singapore importers are encountering CNH directly in supplier contracts, often without a clear explanation of what it is or why it exists alongside CNY.
This guide explains what CNH currency is, how it differs from CNY and RMB, why China maintains two versions of its currency, and what the distinction means for you.
Key takeaways:
- CNH is the offshore version of the Chinese renminbi: CNY is used onshore in Mainland China, while CNH trades more freely in international markets, although both represent RMB.
- CNY and CNH can trade at slightly different exchange rates: Because CNY is managed by the People’s Bank of China and CNH is market-driven, the rate difference can affect the final cost of supplier payments.
- Direct CNH payments can simplify payment routes: Paying suppliers directly in CNH can avoid unnecessary SGD-to-USD-to-CNH conversions, potentially reducing FX costs, intermediary fees, and settlement delays.
- Singapore businesses can hold and pay CNH without a Mainland China bank account: A multi-currency account that supports CNH can be used to manage recurring Chinese supplier payments without establishing a local banking relationship in China.
- WorldFirst makes recurring CNH supplier payments easier to manage: The World Account lets Singapore businesses hold and convert CNH, pay Chinese suppliers and 1688.com and process batch payments, all from one place.
Open a World Account to hold and pay Chinese suppliers directly in CNH without opening a Mainland bank account.
What is CNH currency?
CNH is the market code for offshore renminbi, the version of China’s currency that trades in financial centres outside Mainland China. The ‘H’ in CNH originally stood for Hong Kong, where the offshore market first developed, though CNH now trades across multiple international centres, including Singapore.
Unlike CNY, CNH isn’t an official ISO currency code. It’s a market convention used by banks, brokers and payment providers to distinguish offshore trading from onshore settlement.
In SWIFT payment messages, CNY is the code used regardless of whether the transaction happens onshore or offshore, so the CNH label you see on an invoice or a platform screen is a market descriptor rather than a formal payment instruction code.
The key operational difference is how each currency is priced. CNH floats freely in response to supply and demand in international markets, with no daily intervention by the People’s Bank of China (PBOC).
That makes CNH behave more like a conventional floating currency, responsive to trade flows, interest rate differentials, and market sentiment, as SGD, USD, or EUR are.
RMB, CNY and CNH: what’s the difference?
RMB, or renminbi, is the official name of China’s currency, meaning ‘the people’s currency’ in Mandarin. The Yuan is the unit of account in the renminbi system, represented by the symbol ¥, similar to how ‘pound’ is the unit of account in the British currency.
CNY and CNH are both renminbi, but the distinction is about where and how each version trades:
- CNY is the onshore code, used for all domestic transactions inside Mainland China. The PBOC sets a daily central parity rate and allows CNY to trade only within a controlled band around that rate. Foreign businesses without a Mainland entity face restrictions on how much CNY they can buy, sell or hold.
- CNH is the offshore market code, used in international trade and settlement outside Mainland China. It trades freely without a daily band, and foreign businesses can hold and transact in it without needing a Mainland China bank account.
Read more:
Why does China have two currencies?
China maintains two versions of its currency to balance two competing priorities:
- Tight control over domestic capital flows
- Need to support renminbi use in international trade
The solution was CNH, introduced in 2010 following a clearing agreement between the PBOC and the Hong Kong Monetary Authority (HKMA). In February 2010, the HKMA clarified supervisory principles that allowed Hong Kong banks to develop a full range of renminbi business, with the clearing arrangement revised further in July of that year.
This created a parallel, internationally accessible version of the currency that foreign businesses could hold and trade, while CNY remained the strictly managed domestic currency.
Since its launch, offshore RMB infrastructure has matured considerably. As of 2025, RMB ranked as the 6th most-used currency for global payments by value, with a 2.73% share, per SWIFT data.
What CNH means for Singapore businesses paying Chinese suppliers
For an established importer running recurring payments to Chinese factories, the CNY/CNH distinction shows up in three practical ways: cost, routing and access.
Cost
Because CNY is managed within a band and CNH floats freely, the two can trade at slightly different rates against SGD or USD on the same day. The gap is usually small but can widen during periods of market stress.
If your payment provider settles in CNH but your invoice was priced against a CNY benchmark, that spread affects your final landed cost, even before any margin your bank or provider adds on top.
Read more: 8 benefits of foreign exchange risk management for businesses
Routing
Some traditional correspondent banking routes convert SGD to USD before converting again to CNH, a double-conversion chain that adds cost and time at each step.
Settling directly in CNH removes that intermediate leg.
Direct CNH settlement also tends to move faster than routes that pass through multiple correspondent banks, since each additional hop in a payment chain introduces potential delay and deduction.
Read more: How long does a telegraphic transfer take?
Access
You don’t need a Mainland China bank account or a local agent to hold or pay in CNH.
A foreign currency account or a multi-currency account that supports CNH balances is sufficient for most supplier payment scenarios, which matters if you’re sourcing from multiple factories and don’t want to open banking relationships in China itself.
None of this means CNH is automatically cheaper than routing through CNY-equivalent channels. It depends on your provider’s FX margin, the corridor, and how many intermediary banks sit between you and your supplier.
How WorldFirst supports CNH payments
WorldFirst is a Monetary Authority of Singapore-regulated Major Payment Institution, and holds MAS licences under the Payment Services Act covering account issuance, domestic and cross-border money transfers, and e-money issuance.
WorldFirst isn’t a bank, and it doesn’t offer lending, payroll or full domestic banking services, so if you need working capital financing or cash management alongside your supplier payments, you’ll still need a banking relationship for that.
Where WorldFirst fits specifically into the CNH conversation is the World Account, a multi-currency account that lets Singapore businesses hold balances in over 20 currencies, including SGD, USD, CNH, HKD and MYR, without needing a Mainland China entity or bank account.
For importers connecting directly with Chinese wholesale platforms, WorldFirst’s integration with 1688.com through 1688 World Pay allows Singapore businesses to pay in CNH without a Mainland bank account or an intermediary agent.
Practical features that matter for recurring supplier relationships include:
- Batch payments of up to 200 invoices in a single run, which helps if you’re settling several suppliers on the same monthly cycle
- Forward contracts that let you lock in an FX rate ahead of a future payment date if you want cost certainty on a large upcoming order
Around 80% of transfers on WorldFirst’s network arrive on the same day, which matters when a supplier is holding stock pending payment confirmation.
Open a World Account to manage international supplier payments, FX and records from one place.
FAQs
1. What is CNH currency?
CNH is the market term for offshore renminbi traded outside Mainland China in financial centres such as Hong Kong, Singapore and London. It is used for international RMB trading and settlement and is not a separate currency from CNY.
2. What is the difference between CNY and CNH?
CNY is the onshore renminbi used inside Mainland China and managed within a trading band set by the People’s Bank of China. CNH is the offshore renminbi traded internationally, where its exchange rate is more freely determined by market supply and demand.
3. Are CNY and CNH worth the same?
They represent the same underlying renminbi, but their exchange rates against currencies such as SGD or USD can differ slightly because CNY and CNH trade in separate markets under different rules.
4. Do I need a Chinese bank account to pay a supplier in CNH?
No. Singapore businesses can use a foreign-currency or multi-currency account that supports CNH to convert funds and pay Chinese suppliers without opening a Mainland China bank account.
5. Why would a business pay a Chinese supplier in CNH?
Paying directly in CNH can reduce unnecessary payment routing where a transfer would otherwise convert through an intermediate currency such as USD. The actual cost still depends on the provider’s FX rate, fees and settlement route.
6. Can WorldFirst be used to pay Chinese suppliers in CNH?
Yes. WorldFirst’s World Account supports CNH balances and allows eligible Singapore businesses to convert funds and make supplier payments in CNH. It can also be used with 1688 World Pay for supported purchases from 1688.com suppliers.
Sources:
- https://www.sc.com/en/news/corporate-investment-banking/what-is-the-renminbi-and-why-rmb-internationalisation-matters/
- https://www.swift.com/sites/default/files/files/rmb-tracker_january-2026.pdf
- https://www.imfconnect.org/content/dam/imf/News%20and%20Generic%20Content/GMM/Special%20Features/ChinaFXManagement06032019.pdf
- https://www.hkma.gov.hk/eng/news-and-media/insight/2014/02/20140218/
- https://www.bis.org/publ/work492.pdf
- https://wise.com/us/blog/cny-vs-cnh
- https://www.omfif.org/2020/07/eurodollar-lessons-for-hong-kong-renminbi/
