HSBC shares fall as U.S. considers decoupling USD from HKD

08.07.2020 - Kulakov Vladimir
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.

Risk disclaimer "Market Solutions Ltd – Suite 305 Griffith Corporate Centre P.O. Box 1510 Beachmont, Kingstown, St Vincent and the Grenadines is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0128 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of Market solutions Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or Market Solutions limited." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?