ABSTRACT This study compares the impact of transnational higher education (TNHE) on student identity in two types of operating model, namely the international branch campus and Sino-foreign institute. The developmental characteristics of both types in China over the past two decades are reviewed, with a focus on students’ identity positioning in the contexts of institutional purposes. A qualitative approach is adopted to delve into participants’ narratives and reflections, followed by an analysis of their identity development through the lens of Bildung theory. Differences in the purposes and strategies of the two types of TNHE institution were found to have an impact on students’ experiences and perceptions of their ongoing self-identity formation. By comparing the two types of institution, the research provides new insights for the further development of higher education internationalisation in China and other countries that offer different models of transnational education.