Consequence of USD-HKD Peg Break due to HK National Security Law 聯繫匯率脫鉤滅中華？By Chapman Chen, HKBNews

A break of USD-HKD peg, as a result of US sanctions on China over the Hong Kong National Security Law may put an end to China.

US Secretary of State, Mike Pompeo, told Congress on Wednesday that Hong Kong no longer enjoys the autonomy promised by Beijing, stripping this international financial center of its special status under US law. Indeed, America has the authority to cancel the USD-HKD peg, according to Aidan Yao, senior Asia economist at AXA Investment Managers.

Even if the U.S. does not take the initiative to delink the US dollars from the HK dollars, the actual value of the latter may drop so drastically, if and when the National People's Congress passes the Hong Kong National Security Law, that the Hong Kong Monetary Authority will not be able to inject enough liquidity into the market, in order to support the HKD, and maintain its link to the US dollars.

As China cannot get the international currency USD freely and adequately on its own, it has heavily relied on Hong Kong to get USD. If China cannot acquire USD by exchanging HKD for USD in Hong Kong, then it will probably be the end of China.