HKMA Participates in China Central Bank’s Preparation of Countermeasures for US Sanctions

Hong Kong’s position as a global financial center will end if it is kicked out of SWFT

Pedestrians walk past the building housing the Hong Kong Monetary Authority's office on Oct. 24, 2008. Ted Aljibe/AFP via Getty Images

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.