The warning from Lai, who was released on bail Wednesday after becoming the most prominent pro-democracy activist to be arrested under Hong Kong’s new national security law, fell on deaf ears. Next Digital shares climbed as much as 42% Friday morning, resuming the roller-coaster ride the holding company’s been on this week. Lai denies he broke the law.
The shares are still up almost 400% for the week and last traded at 42 HK cents (7.43 Singapore cents), although that’s far below their intraday high of HK$1.96.
The rally was largely a result of a campaign by pro-democracy supporters to buy up the company’s shares as a way to push back against his arrest. Some Hongkongers and businesses that support the democracy cause have also been buying up advertisements in Lai’s Apple Daily to show their support.
See also: Hong Kong’s stock market booms with Wall Street in turmoil
Hong Kong’s Securities and Futures Commission has requested brokers to submit client information and recent transaction records related to Next Digital’s shares, the Hong Kong Economic Journal reported, citing unidentified brokers. On Tuesday, the regulator warned investors to exercise “extreme caution” with the stock and that it would closely monitor trading activity in Next Digital.
In response to the report, Lai said he doesn’t know what the SFC might be trying to do but said the people who recently bought the shares were just expressing support for the company, which owns Apple Daily. The paper’s offices were searched this week by police.
Separately, Lai ruled out taking advantage of Next Digital’s share surge by issuing new stock at inflated prices, saying that would be a “very dishonest way” for the company to raise money. Lai also said he has no plans to divest his shares in his media empire, whose business “will go on without me” should he be convicted.
