The Hong Kong stock slotxo exchange halted trading of Next Digital shares Monday at the media company's request after authorities froze assets belonging to its founder, Jimmy Lai, who has been a high-profile voice in the territory's pro-democracy movement.
Later in the day, the media tycoon and nine other pro-democracy activists pleaded guilty to taking part in an unlawful assembly in 2019. Lai is already serving a 14-month sentence for his role in two other unauthorized assemblies during a period when Hong Kong. residents were involved in mass anti-government protests.
Next Digital said in a filing that it requested the trading halt after authorities announced the freeze on Lai's assets Friday under a national security law that critics say is meant to snuff out dissent in the semi-autonomous Chinese territory. Next Digital publishes pro-democracy tabloid Apple Daily, and the company was founded by Lai, who owns a 71% stake and is its controlling shareholder.
The freezing of Lai's assets raises questions about Next Digital's survival as a company. Advertisers have become wary of Apple Daily's staunch, pro-democratic stance in Hong Kong, adversely impacting its revenue as authorities crack down on dissenting voices in the city at the urging of leaders in Beijing.
Hong Kong security minister John Lee dismissed concerns that the freezing of Lai's assets was an attack on press freedom and said that under the national security law, he is able to freeze assets if there are reasonable grounds to suspect they are related to offenses that endanger national security.
