Shares of HSBC Holdings (0005), which draws more than two-thirds of its pretax income from Hong Kong, slumped today after a report said the U.S. is mulling a move to punish banks in the city and destabilize the currency peg to the dollar. HSBC was specifically mentioned as a potential target, Bloomberg News has reported, citing people familiar with the matter. London-based HSBC is walking a political tightrope in its attempts to further push into the world’s most populous nation. HSBC is also the largest note-issuing bank in Hong Kong, putting it at more risk than Standard Chartered (2888) and BOC Hong Kong (2388) should the U.S. limit their ability to buy dollars. Standard Chartered fell 2.76 percent, while BOC Hong Kong lost 2.24 percent .-Bloomberg/The Standard

Source: The Standard July 08, 2020 07:30 UTC