Currencies/Chinese fen

Introduction

The Chinese fen (Chinese: 分, fēn) is the smallest denomination of the Chinese yuan, representing one-hundredth of a yuan or one-tenth of a jiao. It has been used as a fractional unit in China’s modern decimal currency system since the late 19th century. Although still a legal monetary unit, the fen has largely disappeared from daily circulation due to inflation and the practical dominance of higher denominations.

History

The fen was introduced as part of China’s shift toward a decimalized monetary system, influenced by Western standards in the late Qing dynasty and fully adopted under the Republic of China in the early 20th century. Under this structure, 1 yuan = 10 jiao = 100 fen.

Following the establishment of the People’s Republic of China in 1949, the fen was incorporated into the new renminbi (RMB) system. The People’s Bank of China began issuing fen coins and banknotes in the 1950s, marking the beginning of China’s modern coinage era.

Fen coins and notes were widely used for small purchases during the early years of the planned economy, when prices were low and the fen held real value. However, economic growth and inflation in the late 20th century gradually reduced its purchasing power. By the 1990s, fen denominations had almost entirely vanished from everyday transactions, though they remain valid in accounting and official pricing.

Coins

Fen coins were issued in 1 fen, 2 fen, and 5 fen denominations. The earliest series appeared in 1955, made primarily of aluminium, light and simple in design. The obverse displayed the national emblem of the People’s Republic of China, while the reverse carried the denomination, flanked by rice ears symbolizing agriculture.

These coins were practical and durable, circulating widely across the country through the mid-20th century. Later issues retained the same basic design, with minor adjustments to inscriptions and minting years. By the 1990s, however, most fen coins had disappeared from daily commerce as their value became negligible.

Banknotes

In addition to coins, the People’s Bank of China issued fen-denominated banknotes in the 1953, 1962, and 1980 series of renminbi. Denominations included 1 fen, 2 fen, and 5 fen, printed on lightweight paper and featuring designs representing China’s industrial and agricultural achievements.

These small notes were commonly used for public transport fares, market goods, and other low-value transactions during the 1950s–1970s. Production eventually ceased as inflation made the fen impractical for everyday use. Today, fen notes are rarely seen except among collectors or in historical sets of Chinese currency.

Currency

The fen operates within China’s modern decimal currency system as follows:

1 yuan = 10 jiao = 100 fen

While fen coins and notes remain legal tender, transactions are now rounded to the nearest jiao or yuan in practice. The People’s Bank of China continues to recognize the fen as a subunit of the yuan for accounting, pricing, and electronic systems.

Legacy

The Chinese fen symbolizes China’s modernization from traditional coinage to a globalized monetary system. Though its physical use has declined, the fen’s existence marks a bridge between the old copper-cash economy and the contemporary renminbi.

It remains an enduring component of China’s decimal structure and an important part of the nation’s monetary history, reflecting both economic change and continuity across centuries.