While the onshore and offshore renminbi markets remain decoupled, the start of renminbi settlement under the trade account enables Hong Kong’s offshore renminbi (CNH) currency market to coexist with the onshore (CNY) market, leaving significant room for arbitrage. Given that the renminbi’s real and expected rates of return are higher than the real rate of return of other currencies, it has become a positive carry against foreign currencies, reinforcing the tendency to hold assets in renminbi and liabilities in foreign currencies.