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HSBC Slumps as U.S. Weighs Moves to Punish Hong Kong Banks

  • HSBC was mentioned as potential target after Pompeo blast
  • HSBC is the largest HKD-note-issuing bank in Hong Kong
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What Does the New Law Mean for the Future of Hong Kong?
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HSBC Holdings Plc, which draws more than two-thirds of its pretax income from Hong Kong, slumped as advisers to U.S. President Donald Trump discussed a potential move to punish banks in the city and destabilize the currency peg to the dollar.

Europe’s largest financial institution was named as a potential target, Bloomberg News reported, citing people familiar with the matter. U.S. Secretary of State Michael Pompeo last month singled out Peter Wong, the bank’s Asia-Pacific chief executive officer, for signing a petition supporting “Beijing’s disastrous decision to destroy Hong Kong’s autonomy.”