Stock surge in Jimmy Lai's firm unravels after regulator warning
[HONG KONG] Shares of Jimmy Lai's media company slumped on Wednesday following a two-day, 1,100% gain as Hong Kong's securities regulator warned on the stock.
Next Digita closed 41 per cent lower at 65 HK cents, reversing an earlier advance. The Securities and Futures Commission said in a statement late Tuesday it was monitoring trading activity related to the stock and advised investors to exercise "extreme caution." Shares rose to as high as HK$1.96 on Tuesday after ending last week at 9 HK cents.
Buying the stock became a popular way for the city's pro-democracy activists to show support for Mr Lai following his arrest on Monday, along with snapping up copies of his Apple Daily newspaper. The high-profile publisher, who has long called for greater democracy in the former British colony, was released on bail early Wednesday after being arrested on suspicion of breaching the new national security law.
It wasn't just Next Digital that drew support. Activists called in online forums for people to buy "yellow" firms a reference to the colour of the pro-democracy movement first popularised in protests that erupted in 2014.
Most Kwai Chung, a satirical media group known for its anti-government stance, tripled in the past two days before falling 36 per cent on Wednesday. Mi Ming Mart Holdings, founded by former pro-democracy politician Erica Yuen, has also tripled this week.
Easy Repay Finance & Investment chaired by Stephen Shiu Yeuk-yuen, who is an outspoken supporter of the democratic movement surged as much as 97 per cent on Wednesday before ending 7.6 per cent higher.
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Next Digital said late Tuesday it wasn't aware of any reason for increase in the volume and share price, according to a Hong Kong stock exchange filing.
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