Onshore RMB exchange rate: refers to the spot exchange rate of RMB in Chinese mainland published by China Foreign Exchange Trading Center authorized by the People's Bank of China. Due to the compulsory foreign exchange settlement system in the onshore market and the special role played by the central bank in the inter-bank foreign exchange market, the onshore RMB exchange rate cannot reflect the market supply and demand, but is a controlled exchange rate.

Offshore RMB exchange rate: The so-called offshore RMB market refers to the market outside Chinese mainland where RMB deposits and loans can be made. At present, Hong Kong is the most active offshore RMB market, and other countries such as Singapore, London and Taiwan Province Province are also actively striving for the role of offshore RMB center. There are three exchange rates in the RMB market in Hong Kong: spot exchange rate, forward deliverable contract (DF) and forward non-deliverable contract (NDF). The spot exchange rate is mainly studied here. Usually, foreign countries want RMB to appreciate sharply, but domestic ones are just the opposite, so the offshore exchange rate is higher than the onshore exchange rate.