Jimmy Lai’s Next Digital to Shut Down July 1 Amid China Pressure

(Bloomberg) -- Next Digital Ltd, which is owned by now-jailed media tycoon and activist Jimmy Lai, will cease operations on July 1, according to an internal memo to staff.

The listed Hong Kong company is the publisher of the now-shuttered pro-democracy newspaper Apple Daily, which closed last week after Hong Kong authorities used a China-imposed national security law to arrest top editors and executives.

A representative from Next Digital and Lai adviser Mark Simon did not immediately respond to requests for comment on Wednesday.

The popular newspaper’s demise generated renewed concerns about declining press freedom in Asia’s main financial center. China’s actions were condemned by U.S. President Joe Biden, who said it was a “sad day for media freedom in Hong Kong and around the world,” adding that “Beijing has insisted on wielding its power to suppress independent media and silence dissenting views.”

Under Hong Kong trading rules, the city’s exchange operator can cancel a listing if a company goes into liquidation or if a firm’s business “is no longer suitable for listing,” among other reasons. In such a scenario, a firm’s outstanding shares can move onto an over-the-counter system which allows shareholders to dispose of their stock typically at a steep discount -- should they find any buyers at all. Next Digital shares have been suspended since June 17.

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