HONG KONG -- The head of Hong Kong's security force sent a stern warning Monday to Jimmy Lai, the jailed 73-year-old founder of a fiercely pro-democracy newspaper in Hong Kong, by expressing his resolve to deal with any national security risks.
This follows moves to freeze Lai's key assets under the China-imposed national security law covering the city.
John Lee, Hong Kong's security secretary, told reporters that "any activities that endanger national security will not be tolerated."
"Such activities or such person or such organization will receive the full force of the law," Lee said in the news conference Monday called to explain his actions against Lai. However, Lee did not mention Lai or others by name.
Lee said Friday evening that he ordered all shares held by Lai in Next Digital, the Hong Kong-listed publisher of the outspoken Apple Daily newspaper, to be frozen, along with the local bank accounts of three companies owned by Lai. The secretary's statement noted that authorities have discretion to act to prevent the removal of property from the city.
When a reporter asked Monday whether the government might take over Next Digital, of which Lai owns 71%, Lee replied, "I shall not be discussing rumors here."
Lai already received a 14-month prison sentence in April for taking part in unauthorized assemblies during pro-democracy protests in August 2019.
Lai appeared in court Monday morning with nine other prominent democracy activists, including former lawmakers Albert Ho and Lee Cheuk-yan. They all pleaded guilty to participating in an unauthorized protest on Oct. 1, 2019, the 70th anniversary of the establishment of the People's Republic of China. The 10 activists could face a maximum penalty of 40 months in prison each on the current charge.
The media owner has been in jail since Dec. 31. Under the national security law imposed on the city by Beijing last June, he faces charges of collusion with foreign forces for his alleged role in supporting calls for other nations to sanction Hong Kong and China.
The latest moves come ahead of the annual June 4 vigil in Hong Kong marking Beijing's deadly 1989 crackdown on student protesters at Tiananmen Square and the 100th anniversary of the founding of the Chinese Communist Party on July 1.
Trading of Next Digital shares was suspended Monday on the Hong Kong Stock Exchange. The company is set to make an announcement about the freezing of Lai's shares and assets.
According to Next Digital's interim report published in December, Lai provided an unsecured loan of 106 million Hong Kong dollars ($13.6 million) to the company in mid-November, adding to an outstanding balance of HK$500 million as of Sept. 30. Lai has pledged to provide up to HK$765 million in aggregate.
Media owner Jimmy Lai leaves court in Hong Kong on Feb. 9: The founder of Apple Daily has been in police custody since Dec. 31. © Reuters Next Digital's shares closed at 18.6 Hong Kong cents Friday. The company has been in dire financial straits like other local media businesses, but faces the additional strain of an informal advertising boycott by the Hong Kong government and pro-Beijing businesses.
The company has recorded five straight years of net losses and posted an interim loss of HK$146 million for the six months up to Sept. 30.
As part of its cost-saving measures, the company ceased publishing its Taiwan print edition Monday. Though the online edition will continue, Next Digital said Friday that it "will be making certain redundancies in respect of its operations in Taiwan."
Lee hinted Monday at further steps against Lai and Next Digital. "We will make use of all legal measures," he said.
David Webb, a Hong Kong-based activist investor, has doubts about the government's latest move against Lai and the vocal media organization that he owns.
"Even if Mr. Lai is convicted, given the advertising boycott against the company, the long decline in its share price, and that he's been supporting it with loans, it might be difficult for the prosecution to show that he has benefited from the offense and therefore that a confiscation should be made under the [national security law]," Webb wrote.
Additional reporting by Michelle Chan