HK’s Next Digital Stock Soars When Trading Resume After Jimmy Lai’s Assets Freeze

File Photo: The Next Digital Ltd logo can be seen on May 17, 2021 in front of a building in Hong Kong, China. REUTERS / Lam Yik

May 27, 2021

Donnie Quoc and Scott Murdoch

Hong Kong (Reuters)-Stocks of Jimmy Lai’s Next Digital Limited, imprisoned on Thursday, the first day of trading, after a week or more suspension after a freeze on the assets of democratic activists under the National Security Act. Soared.

In a statement late Wednesday, the media publisher said it had sufficient working capital for at least 18 months from April 1st, without additional funding from its controlling shareholder, Lai.

The stock opened at HK $ 0.45, up 141.9%. This is the highest since December 2020, when Rye was indicted under a safety law imposed by China earlier that year. They then expanded their profits to HK $ 0.80, the highest since August 2020, when Rye was first arrested and the National Security Police stormed the newsroom of his Apple Fruit Daily.

Stock prices can be very volatile, as trading is dominated by retail investors, and the spikes are often the result of Rye and buyers’ support for his democratic publications. is.

“There are a lot of investors willing to speculate on this stock. It’s crazy,” said Luis Tse, managing director of Welcy Securities. “I don’t think this move is based on any kind of financial base of stocks.”

Hong Kong’s National Security Agency has told Next Digital CEO Chan Kim Hung about the shares and bank accounts of three listed companies that Lai owns, directly or indirectly. The publisher said it had informed that it was banned from trading its assets. Statement late Wednesday.

“The Board does not believe that notification issues will have an immediate negative impact on the Group’s financial position or business,” Cheung said in a statement.

Next Digital shares were suspended on May 17th.

Apple Kaday, a democratic tabloid published by Next Digital, said the group had sufficient working capital for nine to ten months at the time.

On Wednesday, Next Digital stated that as of March 31, unaudited bank and cash balances reached HK $ 521.4 million ($ 67.17 million). Printing.

Next Digital, in which Lai owns a 71.26% stake, also said it did not expect a notice from national security authorities to affect the trading volume of its stake.

Lai was sentenced to 14 months in prison for attending an unauthorized rally during an anti-government protest in Hong Kong in 2019. law. He faces three more sins, including collusion with foreign countries.

Mr. Lai will appear in court on Friday and will be sentenced to another unauthorized rally on October 1, 2019, China’s founding anniversary on October 1, 2019. He pleaded guilty.

($ 1 = 7.7629 Hong Kong dollars)

(Report by Donny Kwok, Written by Marius Zaharia, Edited by Gerry Doyle)

HK’s Next Digital Stock Soars When Trading Resume After Jimmy Lai’s Assets Freeze

Source link HK’s Next Digital Stock Soars When Trading Resume After Jimmy Lai’s Assets Freeze

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