Standard Chartered Plc Chief Executive Officer Bill Winters (LUKE MACGREGOR/BLOOMBERG)

Standard Chartered Plc Chief Executive Officer Bill Winters said Hong Kong dollar’s peg to the greenback is “unassailable” at a time when the US has threatened action against China following the passage of the National Security Law for the special administrative region.

READ MORE: Trump aides 'rule out ending Hong Kong dollar peg'

“The Hong Kong peg is extremely well-supported with monetary reserves in Hong Kong,” Winters said in a Bloomberg Television interview Thursday. “Attempts to undermine Hong Kong I’m afraid would have some pretty deleterious effects on the financial system more broadly and it’s hard to see any policymaker in the world thinking that’s a good thing to do anytime, but particularly now, during a pandemic.”

The Hong Kong peg is extremely well-supported with monetary reserves in Hong Kong. Attempts to undermine Hong Kong I’m afraid would have some pretty deleterious effects on the financial system more broadly...

 Officer Bill Winters, Standard Chartered Plc Chief CEO

US President Donald Trump decided against moving to undermine the Hong Kong dollar’s peg after aides in his administration weighed the possibility of limiting Hong Kong banks’ access to the greenback as a way of striking back at Beijing, Bloomberg News has reported. Those against the move were concerned that it would be difficult to implement and could end up hurting the US, people familiar with the matter had said.

The city’s linked exchange rate system is supported by foreign reserves of more than US$440 billion, according to the Hong Kong Monetary Authority. The currency is also trading near the strongest it can be and the city has sold billions of local dollars since April to stop it from strengthening further.

Still, executives at HSBC Holdings Plc have begun wargaming potential disruptions to the Hong Kong dollar peg, as the worsening political situation endangers its appeal, people familiar with the matter have said. Kyle Bass, Dallas-based founder of Hayman Capital Management is starting a bearish fund that will make all-or-nothing wagers on a collapse in Hong Kong’s currency peg.

ALSO READ: Why US threat to HK dollar peg is unlikely to become reality?

Standard Chartered and HSBC both count Hong Kong as their largest market and are two of the three note-issuing banks in the city.

"Relations between the US and China remain highly charged, driven by both economic and political considerations,” Standard Chartered Chairman Jose Vinals said in its earnings statement on Thursday. “We do not expect an easy or quick resolution. We do believe, however, that Hong Kong will continue to play a key role as an international financial hub."