From GC Performance Tuning training documents of Oracle:
-Xmn[size]: Size of young generation heap space.
Applications with emphasis on performance tend to use -Xmn to size the young generation, because it combines the use of -XX:MaxNewSize and -XX:NewSize and almost always explicitly sets -XX:PermSize and -XX:MaxPermSize to the same value.
In short, it sets the NewSize and MaxNewSize values of New generation to the same value.