US legislation that paves the way for diplomatic action and sanctions against Hong Kong could potentially threaten the city’s exchange rate peg and long-term status as a financial centre, analysts said. The Hong Kong Human Rights and Democracy Act, which was signed into law last month by US President Donald Trump, increases scrutiny of Hong Kong’s economic and political systems, and its passage comes during a time of unprecedented unrest in the city. Among other mandates, it allows the US State Department to suspend Hong Kong’s special trading status based on whether the city retains a sufficient level of autonomy...