Next Digital Seeks To Resume Share Trading

Media firm Next Digital says it's asked to resume trading in shares on Thursday after the company established that it had the resources to fund its operations despite the freezing of majority shareholder Jimmy Lai's assets.

The shares were suspended earlier this month when the Security Bureau moved to freeze Lai's majority shareholding in the publisher of Apple Daily, as well as other assets which it says are linked to national security offences.

In a filing to Hong Kong Exchanges and Clearing on Wednesay, the company said the directors had assessed the current and potential long-term implications of the freezing order, and did not expect any "immediate negative effect on the financial situation or operations of the group".

It said the company had unaudited bank and cash balances of more than $500 million, enough to keep its operations running for at least 18 months.

It said it also expected to save money by ending the print publication of Apple Daily's Taiwan edition.

It said shareholders and potential investors should exercise caution in dealing with the company's securities.

The police’s national security department charged Lai with collusion with a foreign country to endanger national security on December 11. It brought two further charges of conspiracy on April 16 this year.

The Security Bureau made the freezing order on May 14 under article 43 of the national security law.

It said the notice directed that “relevant persons and organisations must not, directly or indirectly, deal with certain property which is reasonably suspected to be related to offences endangering national security”.

Separately, Lai is serving a 14-month sentence after being convicted of taking part in unauthorised assemblies in August 2019.