Jimmy Lai's Assets Frozen

National security police have frozen Lai's personal assets

 

Around dinner time tonight the Hong Kong government announced the national security police have frozen nearly HK$500 million (US$64.3 million) in personal assets belonging to Apple Daily founder Jimmy Lai Chee-ying, the first use of such powers under the new law.

The frozen assets include all 70 percent of Lai's shares in Next Digital as well as his holdings in three other firms. 

Next Digital shares fell to 19 cents today

Based on the company's market capitalization of HK$490.3 million, Lai's 70 percent stake is worth HK$343 million.

The police issued the letter regarding the freezing of assets to Next Digital which publishes Apple Daily and its auditors of the move, which came at the end of trading day. Next Digital shares closed down 2.11 percent at 19 cents.

"Apple Daily will be published as usual tomorrow. Don't forget to get a copy," the paper's editor-in-chief, Chan Pui-man, wrote on Facebook on Friday.

Meanwhile chief executive of Next Digital, Cheung Kim-hung, reassured staff earlier in the week on Tuesday.

"We won't shut [Apple Daily] down because it is in a dangerous situation. No, definitely not, I can assure you this will not happen."

CEO Cheung says Apple Daily will continue

The latest news comes as earlier in the day Apple Daily Taiwan announced after 18 years it would stop publishing a print version of the paper, citing readers' consumption of news has changed, and continued operating losses due to low advertising revenue.

It seems Lai may have prepared for this moment if there are pledges the paper will continue to operate.

He is currently in jail, sentenced for 14 months for organizing and taking part in two unauthorized assemblies during the anti-government protests in August 2019.

Last December he was charged by the national security police for "colluding with foreign forces to endanger national security", a crime, if convicted can lead to a life sentence. He was indicted on two other charges last month.

One can expect a repeat of last August when lot of people woke up early to get a copy of the Apple Daily. For the average Hongkonger, this is one of the last ways they can support the paper, a proxy for the city's press freedom.

Expect a lot of people to buy the paper tomorrow

If and when Lai is convicted of breaching the national security law, his assets that are currently frozen, can be by law confiscated by the government. 

HK$500 million is no chump change...