Stocks in pro-democracy Hong Kong news organisation soar after arrest of owner Jimmy Lai
Shares of a Hong Kong pro-democracy media parent company skyrocketed after its founder Jimmy Lai was arrested for violating the draconian new national security law on Monday, as pro-democracy 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 tenets under the new security law which can lead to life imprisonment.
Two of his sons were also arrested, accused of similar offences. Around 200 officers were deployed to search the building and the police said no “reporting material” was taken as evidence.
However, Mr Lai's arrest is widely seen as a crackdown on freedom of the press by China in the semi-autonomous city. The shares of the parent company of Apple Daily, Next Digital Ltd., shot up to 331 percent to HK$ 1.1 in the afternoon on Tuesday, a surge of over 1,000 percent since trading started on Monday at HK$0.09.
The record gain was 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 now as the future it holds seems unpredictable.”
On Tuesday morning, people flocked to the streets to purchase a copy of Apple News, with some buying it in bulk and distributing copies for free in support of the paper.
The newspaper increased its print run to 550,000 after local media reported large queues of customers snaking around blocks in the city, 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 companies that support independence from China.
The tactic is designed to weaken financial dependence on China and Chinese-owned businesses - which are labelled "red" or "black".
Businesses deemed part of the yellow economy range from hairdressers to taxi companies.
Nine other democracy activists, including politician Agnes Chow, were arrested on the same day for allegedly breaching the national security law.
Boris Johnson, the Prime Minister, on Monday said he was “deeply concerned” about Mr Lai's case and called for rights and freedoms in Hong Kong to be upheld.
