HSBC shares fall as U.S. considers decoupling USD from HKD
British multinational investment bank HSBC saw its shares slump as low as 3% on Wednesday as the U.S. contemplates measures to sanction banks in the city, as well as de-pegging the Dollar from the Hong Kong Dollar.
HSBC shares fell by 2.72% to HK$37.60 ($4.851) at 12:53 Am ET (05:53 GMT), after it saw a record drop of 3.1% in the morning.
Several of U.S. President Donald Trump top advisors have proposed to decouple the dollar and the Hong Kong dollar after Hong Kong enacted its national security laws earlier in the month. While the proposal has yet to reach Trump, it may be already facing opposition from some parts of the Trump administration as concerns rise that it would hurt banks in the U.S. and Hong Kong.
The Hong Kong Dollar’s peg to the Greenback has been in place since 1983.
The bank’s Asia-Pacific CEO Peter Wong expressed support for the laws in June.
Meanwhile, sanctions against entities enacting the laws that were passed by the U.S. Senate at the end of June are also up for Trump’s review.