Jailed Hong Kong tycoon’s media company to close

Hong Kong — Jailed media tycoon and activist Jimmy Lai’s Next Digital will cease operations on July 1, according to an internal memo to staff.

The listed Hong Kong media company is the publisher of the now-shuttered pro-democracy newspaper Apple Daily, which closed last week after authorities there used a China-imposed national security law to arrest top editors and executives.

Mark Simon, a representative from Next Digital and adviser to Lai, did not immediately respond to requests for comment on Wednesday.

The popular newspaper’s demise has generated renewed concerns about declining press freedom in Asia’s main financial centre. China’s actions were condemned by US President Joe Biden, who said it was a “sad day for media freedom in Hong Kong and around the world”, adding that “Beijing has insisted on wielding its power to suppress independent media and silence dissenting views.”

Under Hong Kong trading rules, the city’s exchange operator can cancel a listing if a company goes into liquidation or if a firm’s business “is no longer suitable for listing”, among other reasons. In such a scenario, a firm’s outstanding shares can move to an over-the-counter system that allows shareholders to dispose of their stock, typically at a steep discount — should they find any buyers at all. Next Digital shares have been suspended since June 17.

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