Next Digital Warned It Could Be Delisted

Next Digital, owned by jailed media tycoon Jimmy Lai, said it has been warned by the Hong Kong stock exchange that it could be delisted if trading does not resume by December 16, 2022.

The company suspended trading on June 17 after national security police arrested and later charged a number of executives of its subsidiary, Apple Daily, on suspicion of colluding with foreign forces.

In a letter to the troubled firm, the stock exchange said Next Digital might have failed to comply with a number of listing rules, which among other things require the company "to be in conformity with the laws".

The bourse added that it can cancel the listing of companies that have been suspended for trading for a continuous period of 18 months, and for Next Digital the deadline is December 16, 2022.

The stock exchange also told the firm to fix a number of problems if it wants to resume trading.

"If the company fails to remedy the issues causing its trading suspension, fulfill the resumption guidance and fully comply with the Rules to the Exchange's satisfaction and resume trading in its shares by 16 December, 2022, the Listing Division will recommend the Listing Committee to proceed with the cancellation of the company's listing," it said.

Next Digital said it will continue to suspend trading until further notice.