Many times, offshore RMB is weaker than onshore RMB. For example, 1 USD can be exchanged for 6.96 offshore RMB, while onshore RMB is only 6.95, indicating that onshore RMB is more valuable than offshore RMB.
Onshore RMB is RMB circulating in Chinese mainland, while RMB circulating outside the mainland is called offshore RMB. In theory, offshore RMB is unrestricted and can be freely converted into US dollars. The onshore RMB can only be exchanged for $50,000 per year according to the regulations of the central bank.
Extended data
Many people in the stock market "play new shares", that is, subscribe for new shares. In the past, almost all the new shares subscribed in the primary market were successfully listed in the secondary market, and almost all of them were sold at high prices on the first day of listing, and some of them rose as high as 200% on the first day of listing.
The listing of new shares in the secondary market in the later period may not be smooth, and even if it is listed, it may fall below the issue price. In this case, the first-level subscription will cost a lot of money, and it will take a while to wait, but it will still lose money.
The fund issued by 1999 tried 1 yuan fell below the issue price on the first day of listing, which eventually led to the government's intervention in the stock market and ushered in a historic "5. 19" rise.
This is true for stocks, as well as bonds and central bank bills.
Financial institutions buy central bank bills at a low price in the primary market (equivalent to investors buying bonds and stocks), and then sell central bank bills at a high price in the secondary market, thus achieving profitability, provided that the secondary market price is higher than the primary market. Once the secondary market price is lower than the primary market, financial institutions will lose money after buying central bank bills. This situation is called the interest rate inversion in the secondary market and the primary market of central bank bills.
Flush official website-Offshore and onshore RMB upside down.