The Hong Kong Monetary Authority (HKMA) recently admitted that it’s been collaborating with China’s Central Bank on countermeasures for potential U.S. sanctions, a mutual geopolitical risk for both Hong Kong and mainland China.
At a May 3 meeting in the Hong Kong Legislative Council, questions were raised about the geopolitical risks and the overall financial risks that Hong Kong may encounter, including the consequences of being sanctioned by the United States, such as having overseas assets frozen or being kicked out of the SWIFT (Society for Worldwide Interbank Financial Telecommunication) system.
Eddie Yue, president of the HKMA, dodged questions about how many overseas assets Hong Kong actually owns. However, when it comes to whether or not they will plan for possible sanctions, he he said, “the geopolitics we are facing is very complicated,” and acknowledged looking at ways to deal with different U.S. sanctions, “this we have been doing.”…