[Commentary] After Li Zhiying, the founder of Next Media, was arrested on suspicion of violating the Hong Kong National Security Law, the trading volume and stock price of Next Media once soared.
On September 10, the Hong Kong police took action to arrest 15 people on suspicion of "conspiracy to defraud" and "handling of property known or believed to represent the proceeds of an indictable crime."
[Explanation] The Hong Kong police pointed out at a press conference held on the same day that after the National Security Department of the Hong Kong Police Force arrested Li Zhiying and several other senior executives of Next Media on August 10, the trading volume and stock price of Next Media’s stock showed extremes. Unusual fluctuations.
On August 7, Next Media’s stock trading volume was approximately 1 million shares, and the closing price was HK$0.09.
However, between August 10th and 12th, the total trading volume of Next Media's stock rose sharply to 7.1 billion shares.
[Concurrent] Chung Wing-min, Chief Superintendent of Narcotics Investigation Division, Hong Kong Police Force
If you compare the daily turnover on August 11 and August 7, the increase is even more alarming, exceeding 4000 times.
The stock price rose from the lowest point of 0.075 Hong Kong dollars on August 10 to the highest point of 1.96 Hong Kong dollars on August 11, but then the stock price quickly fell back to the lowest point of 0.65 Hong Kong dollars.
In other words, compared with the highest price (share price) fell by 66.8%, causing many investors to suffer heavy losses.
[Commentary] The police said that the stock price fluctuation of Next Media has aroused the attention of the society and the police, and suspected that it is involved in illegal activities.
After investigation, the police arrested 14 men and 1 woman that day, aged between 22 and 53, of which 5 were young people under 30, and 1 had a triad background.
The person involved in the case made a total profit of more than 38.7 million Hong Kong dollars, and one of them made a profit of more than 25 million Hong Kong dollars. The police have now searched the residence of the person involved and frozen his bank and stock accounts.
[Concurrent] Zou Xiangyou, Superintendent of Narcotics Investigation Division, Hong Kong Police Force
The police will investigate the source of funds and the whereabouts of the proceeds of the crime to determine whether there are other people involved. The arrested person is currently being detained for investigation. The police will continue to investigate from multiple directions, and it is not ruled out that more people will be arrested. .
Reporter Li Waner and Chen Haonan from Hong Kong
Editor in charge: [Wang Yu]