As his attempt to sell a stake in PCCW has failed, Richard Li Tzar-kai now faces a possible breach of local media ownership rules with his 50 per cent stake in Hong Kong Economic Journal. The Broadcasting Authority, the media regulator in Hong Kong, said it is seeking more information from PCCW, the second largest pay-television operator, to see if the rule banning cross-media ownership has been breached. The authority's rule states that anyone who controls one media organisation is barred from owning 15 per cent or more of another. Mr Li indirectly owns 23 per cent of PCCW through Pacific Century Regional Developments. He also personally owns 3 per cent of PCCW, making him the largest shareholder in the company. The problem would have been solved had PCRD minority shareholders approved the sale of the PCCW stake to a consortium led by former investment banker Francis Leung Pak-to. The proposal was voted down yesterday. Mr Li, who owns 75 per cent of PCRD, could not vote after it was revealed his father Li Ka-shing was a member of the consortium. Mr Li could get a waiver allowing him to control more than one media group but a Broadcasting Authority spokesman said it has not received an application from him. Democratic Party lawmaker Sin Chung-kai said the government is unlikely to let Mr Li control PCCW and the Journal at the same time. 'Mr Li had spoken to the public on how he would like to operate the Journal when the transaction closed in August. Mr Li and PCCW are clearly breaching the cross-media ownership rule,' Mr Sin said. A source familiar with the situation said technically Mr Li has not broken the rule, as he invested in the Journal through a trust firm. In August, Mr Li struck a deal with Journal founder Lam Shan-muk and columnist Cho Chi-ming to take 50 per cent of the Journal for HK$280 million. The purchase was made through a trust company called Clermont Media of which Mr Li is a settlor. 'We noticed the sensitive of cross-media ownership issue from the first day we negotiated with Mr Lam,' said a source familiar with the situation. He added Mr Lam would not have sold his stake to Mr Li had they not been confident cross-media ownership was not a problem. 'Technically speaking, the trust set up by Mr Li could be treated as an independent body from PCCW or Mr Li himself,' the source said. Mr Li may also get the so-called 'firewall treatment' from the government as in the case of Television Broadcasts, a free-to-air broadcaster that owns 49 per cent of a pay-television operator, the source said.