Investor Alert

New York Markets Open in:

July 8, 2020, 5:05 a.m. EDT

Trump administration could try to undermine Hong Kong dollar peg: report

The U.S. Trump administration may seek to retaliate against China for a controversial new security law by targeting some Hong Kong banks for supporting it, according to a report from Bloomberg News on Wednesday. The report said some advisors to President Donald Trump have discussed the possiblity of undermining the Hong Kong dollar peg, possibly by curtailing the amount of U.S. dollars Hong Kong banks can buy. The report sent shares of HSBC Holdings PLC (NYS:HSBC) 3.8% lower in European trading as that bank was named as a one potential target. HSBC was widely criticized after its top regional executive, Peter Wong, publicly offered support for the new law, though some media reports say he was pressured to do so as he's a member of a top political advisory body to Beijing.

Link to MarketWatch's Slice.