HSBC Slumps as Trump Advisors Weigh Moves to Punish Hong Kong Banks

The US is considering measures to destabilize the currency peg to the US dollar as a way to punish banks in Hong Kong, with HSBC being a significant target due to its substantial income from the city. Political tensions have risen, especially after comments from US officials like Mike Pompeo. The US administration is exploring ways to limit Hong Kong banks' access to US dollars, but these proposals face strong opposition as they could harm the US financial system more than China. HSBC has declined to comment on these developments.

What potential action is the US considering against banks in Hong Kong?

• Nationalizing foreign banks

• Imposing trade tariffs

• Increasing interest rates

• Destabilizing the currency peg to the US dollar

Why is HSBC particularly mentioned in the US discussions?

• It recently acquired a US bank

• It is a US-based bank

• It draws significant income from Hong Kong

• It has a large market share in the US

What recent event might have put HSBC on the wrong side of US policies?

• Reducing its workforce

• Investing in US technology firms

• Supporting a petition for Beijing

• Opening new branches in the US

What is one potential consequence of the US proposal to limit Hong Kong banks' ability to buy US dollars?

• It could strengthen the US financial system

• It might harm US banks more than China

• It would lead to a trade surplus

• It could increase foreign investments in the US

What has been HSBC's response to the discussions about US actions?

• They have issued a public statement

• They have announced a merger

• They have declined to comment

• They have supported the US proposal