Shares of Next Digital, publisher of Apple Daily, rise after founder Jimmy Lai quits as chairman amid court cases
- Shares of Next Digital jumped as much as 25 per cent after founder Jimmy Lai quit as company chairman to deal with personal matters
- A Hong Kong court released Lai on bail last week, a decision decried by the mainland Communist Party’s mouthpiece People’s Daily
The publisher rose to as high as HK$0.325 on Wednesday from HK$0.26 before ending the day 3.9 per cent higher at HK$0.27, giving it a market value of just under HK$699 million (US$90.2 million). The stock has risen 3.9 per cent in volatile trading this year.
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After arrest of media mogul Jimmy Lai, supporters flock to buy Apple Daily and company shares soar
“Lai’s resignation will have a positive impact on the near-term share price of Next Digital, as he has distanced himself from the company,” said Tom Chan Pak-lam, chairman of the Institute of Securities Dealers, a guild for the brokerage industry in Hong Kong. Chan spoke late on Tuesday.
Lai, who founded Apple Daily in 1995, is the most high-profile person to be detained and charged by Hong Kong police after the controversial national security law imposed by Beijing on the city came into effect in late June. The media mogul is also facing charges stemming from anti-government protests in the city last year and fraud charges relating to office leases.
He was released on HK$10 million (US$1.3 million) bail on Christmas Eve after spending 20 days in custody on charges of endangering national security and fraud. The decision was slammed by the state-run People’s Daily, which claimed it “severely hurt Hong Kong’s rule of law.” Hong Kong prosecutors are planning to appeal against his bail.
