Financial News
Written by: Zhang Weilun
2020-07-08 10:18
Last update date: 2020-07-08 10:18After the implementation of the Hong Kong version of the National Security Law, the US government immediately announced that it would suspend special treatment for Hong Kong. Foreign News also reported that the US government intends to weaken the linked exchange rate system and punish local banks.
"Bloomberg" quoted sources pointed out that the US State Department internally proposed to cancel the extradition agreement with Hong Kong, or to terminate cooperation with the Hong Kong police. It even weakened the linked exchange rate system, including restrictions on Hong Kong’s banking industry to exchange US dollars.
However, the report also pointed out that the idea has not been promoted to the highest decision-making level of the White House, reflecting that it has not been taken seriously. Officials in other departments also opposed it, worrying that it would only harm Hong Kong's banking industry and the United States, not China.
The report also pointed out that the US government intends to punish Hong Kong-based banks, especially HSBC Holdings (0005).
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Linked Exchange Rate System Linked Exchange Rate