-- Hong Kong is not afraid of possible U.S. sanctions, and has prepared contingency plans to weather the challenges.

-- Hong Kong has over 440 billion U.S. dollars of foreign reserves to defend its linked exchange rate system and the HK dollar.

-- The U.S. possesses huge interests in Hong Kong and relies heavily on Hong Kong for a regular trade surplus. Whatever action the U.S. takes to harm Hong Kong will also harm its own businesses.

HONG KONG, June 3 -- Amid uncertainties as to when and to what extent the United States will slap sanctions on Hong Kong, finance chief Paul Chan said Hong Kong is fearless and has already prepared various contingency plans to weather the challenges.

"We are not afraid of possible sanctions by the United States," Chan, financial secretary of the Hong Kong Special Administrative Region (HKSAR) government, told Xinhua in an interview.

The National People's Congress (NPC), China's top legislature, last week adopted a decision to make Hong Kong national security laws in a bid to plug the national security loopholes that has been exploited by foreign forces.

The move, a common practice globally, drew threats from the United States, leading to concerns about possible impacts on the global financial hub, particularly on the Hong Kong dollar, which is pegged to the U.S. dollar, as well as the region's status as a separate customs territory.