Hong Kong dollar could present target for Trump’s second term

Hong Kong’s position as a financial hub linked to the US dollar could present a target for Donald Trump, analysts say.

The Hong Kong dollar, which is considered more stable and convertible than the yuan, has pegged its value to its US counterpart since 1983.

That reality could give China an opening to build a parallel financial system, built on the Hong Kong dollar, to challenge the greenback globally, Bloomberg wrote.

Trump could retaliate by undermining its peg to the US dollar. More broadly, Hong Kong is under heightened scrutiny from Washington.

Lawmakers on a China-focused committee recently accused the city of being a hub of financial crime, and critical to the “deepening authoritarian axis” between China, Iran, Russia, and North Korea.