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Trump’s administration has considered undermining the HKD peg but in the opinion of economists at ANZ Bank the US will not hit Hong Kong due to its interest in the region and the effects of retaliation from China.

Key quotes

“The US is unlikely to stop China from transacting USD. Therefore, the authority could still back the HKD peg system. We wish to emphasise that Hong Kong and China’s central government are prepared for this.” 

“Hong Kong’s Financial Secretary Paul Chan has stated that even if the US takes measures to make Hong Kong dollar settlement inconvenient, the government has a contingency plan. Vigilance is needed, but people do not have to worry too much about it. Hong Kong’s USD settlement will not be affected. Besides its own commercial interests in Hong Kong, the US needs to take into consideration the likelihood of retaliation from China or Hong Kong SAR.” 

“We do not believe the US will penalise Hong Kong even if they are uncomfortable with the National Security Law.”