2. Exchange rate fluctuations of other major currencies, especially the fluctuation of the US dollar index. The offshore RMB market is freely convertible and traded, and market speculation plays a leading role in exchange rate fluctuations. Speculation will change the investment strategy rapidly with the change of foreign exchange market, which also increases the volatility of RMB in offshore market.
3. Domestic RMB is the benchmark anchor of RMB in offshore market. No matter how the RMB exchange rate changes in the offshore market, the pricing power of RMB exchange rate is still at home. The offshore RMB exchange rate may deviate from the domestic RMB exchange rate, but it is impossible to have a big deviation or a completely opposite trend, because although there are certain controls, both domestic and foreign markets are open to a certain extent under the background of actively promoting RMB cross-border settlement. If there is a big deviation in the prices of the two markets, arbitrage can quickly erase the parity difference.