Hong Kong police to merge Tin Sum division with Sha Tin and Ma On Shan

In a move described as an "isolated incident," Hong Kong's government has officially halted its investigation into media mogul Jimmy Lai's Next Digital conglomerate, which is currently undergoing liquidation. The government stated that Financial Secretary Paul Chan decided the probe was no longer necessary. Lai received a 20-year sentence in February for charges of foreign collusion and sedition, while six former Apple Daily executives were given prison terms ranging from six months to ten years in a national security trial.

Next Digital, along with three of its subsidiaries tied to Apple Daily, faced convictions and were subsequently removed from Hong Kong's Companies Register and deemed prohibited organizations under the national security law. The company had been in the process of liquidation since December 2021, and was delisted from the stock exchange in January 2023.

Chan, the financial secretary, defended Hong Kong's corporate governance, stating it remains "sound, efficient, and aligned with international standards." He claimed the governance issues at Next Digital and the unlawful actions of its senior officials were isolated incidents. Clement Chan, previously the managing director of BDO's Hong Kong office, was appointed as the inspector to investigate Next Digital in July 2021.

The investigation commenced shortly after police raids on the company's headquarters in Tseung Kwan O. In September of that year, Clement Chan submitted an interim report, which led to the winding-up of Next Digital following Chan's citation of "public interest." The government is also seeking to seize HK$127 million of Lai's assets, including 15 of his bank accounts and the assets of 17 associated companies.

Lai's lengthy prison term is the highest ever imposed for a national security offense. Since the introduction of the 2020 and 2024 security laws in Hong Kong, the city has plummeted in international press freedom rankings. These laws have led to the arrest and imprisonment of journalists, raids on newsrooms, and the closure of approximately ten media outlets, including Apple Daily, Stand News, and Citizen News.

Over 1,000 journalists have lost their jobs, with many more emigrating. Additionally, Hong Kong's government-funded broadcaster RTHK has introduced new editorial guidelines, purged its archives, and eliminated news and satirical programs.