1,200 per cent rally in Next Digital puts Apple Daily’s publisher among Hong Kong’s biggest media groups, sparks calls for regulatory probe
- Shares of the Apple Daily publisher soared for the second day on Tuesday, surpassing TVB in market value at the peak of its rally
- The stock jumped in the two days following the arrest of its founder Jimmy Lai, bolstering his paper wealth to HK$2.07 billion (US$266 million)
The surge valued his company at HK$2.9 billion, behind broadcaster TVB’s HK$3.9 billion and Tom Group’s HK$4.9 billion, At the peak of its stock rally on Tuesday, Next Digital’s valuation topped at HK$5.2 billion.
Nearly 4.1 billion shares changed hands, almost 10 times what was transacted every day in the past year, as calls sounded out on LIHKG and other social media platforms for Apple Daily’s supporters to buy the stock. The rally led to at least two public figures to urge Hong Kong’s Securities and Futures Commission (SFC) to investigate.
“The share price of Next Digital saw significant and abnormal movement on the day of [Lai’s] arrest and today, but the SFC still has not taken any actions,” said Innes Tang, chairman of the political organisation Politihk Social Strategic, adding that he was making an official complaint in his personal capacity. “This is in stark contrast to [the SFC’s] approach with companies in the past, and raises the question among the public as to the SFC’s management approach and efficiency.”
“The board is not aware of any reasons for these price and volume movements or of any information which must be announced to avoid a false market in the stock trading,” Next Digital said in a filing to the Hong Kong stock exchange after trading.