HONG KONG, May 17 (Reuters) - Trading in shares of Next Digital Ltd was suspended on Monday, after Hong Kong authorities said last week they had frozen assets belonging to jailed owner Jimmy Lai, including his stake in the firm.
Next Digital said the shares would remain on a trading halt ahead of a company announcement regarding the freeze in the tycoon's assets - the first time a listed firm has been targeted by national security laws in the financial hub.
The move against his assets raises worries about the future of Next Digital, which he has been financing with loans, and the broader investment environment in Hong Kong, which authorities have set on an authoritarian path with the imposition of the security law in mid-2020.
Lai, a pro-democracy activist and staunch Beijing critic, was sentenced to 14 months in prison for taking part in unauthorised assemblies during pro-democracy protests in 2019, and is the highest profile arrest made under the security law.
He faces three alleged charges under the new law, including collusion with a foreign country.
Under Hong Kong stock exchange filings, Lai is Next Digital's major shareholder and holds 71.26% of shares that were worth around HK$350 million ($45 million) based on Friday's closing share price.
Next Digital runs Apple Daily, Hong Kong's most influential pro-democracy newspaper that has long been a thorn in the side of Hong Kong and Chinese authorities.
Next Digital CEO Cheung Kim-hung told Apple Daily that Lai's frozen assets had nothing to do with the bank accounts of Next Digital, and that their operations and finances would not be affected.
Senior Hong Kong officials have recently warned Apple Daily about its coverage and have spoken of the possible introduction of a "fake news" law.
Also among Lai's frozen assets were the local bank accounts of three companies owned by him, the Security Bureau said on Friday. The value of those was not immediately clear.
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