Hong Kong paper’s shares soar after arrest of founder

SHARES of a Hong Kong pro-democracy media company skyrocketed after its founder Jimmy Lai was arrested for violating the draconian new national security law on Monday, as likeminded activists showed support with their wallets.

Mr Lai, who has British citizenship, was arrested at home on suspicion of foreign collusion – one of the major crimes under the legislation that can lead to life imprisonment.

Two of his sons were also arrested, accused of similar offences.

Mr Lai’s arrest is widely seen as a crackdown on freedom of the press by China in the semi-autonomous city. About 200 officers were deployed to search the Apple Daily newspaper building, but police said no “reporting material” was taken as evidence.

Shares of the paper’s parent company, Next Digital Ltd, shot up 331 per cent to 1.1 Hong Kong dollars in the afternoon yesterday. The price has risen 1,000 per cent since trading started on Monday.

The gain is a result of protesters rallying behind the organisation, following a social media campaign urging people to support the self-described “most outspoken pro-democracy media in Hong Kong” by investing in it.

“There is a huge amount of money coming from all sides,” said Stanley Wong, a financial columnist. “It’s certainly a high-risk investment as the future it holds seems unpredictable.”

Yesterday morning, people flocked to the streets to purchase a copy of Apple Daily, with some buying it in bulk and distributing copies for free. The newspaper increased its print run to 550,000 after local media reported large queues of customers waiting to buy a copy.

The surge in support for the paper is part of the “yellow economy”, a system where those who oppose Chinese encroachment do businesses with firms that support independence.

Nine other democracy activists, including politician Agnes Chow, were arrested on Monday for allegedly breaching the national security law.

Boris Johnson, the Prime Minister, said on Monday he was “deeply concerned” about Mr Lai’s case and called for rights and freedoms in Hong Kong to be upheld.