The Secretary for Security today issued notices for freezing of property in writing to freeze all the shares of Next Digital (282.HK) held by Jimmy Lai and the property in the local bank accounts of three companies owned by him.

The notices were issued pursuant to Schedule 3 to the Implementation Rules for Article 43 of the Law of the People's Republic of China on Safeguarding National Security in the Hong Kong Special Administrative Region.

On December 11, 2020, Police’s National Security Department laid one charge of Collusion with a Foreign Country or with External Elements to Endanger National Security against Mr Lai.

On April 16, two additional charges, Conspiracy to Commit Collusion with a Foreign Country or with External Elements to Endanger National Security and Conspiracy to Do an Act or a Series of Acts Tending & Intended to Pervert the Course of Public Justice, were laid against him.

Pursuant to section 3(1) of Schedule 3 to the implementation rules, where the Secretary for Security has reasonable grounds to suspect that any property held by any person is offence related property, the secretary may, by notice in writing specifying the property, direct that a person must not, directly or indirectly, deal with the property except under the authority of a licence granted by the secretary.

Furthermore, pursuant to section 3(7) of Schedule 3 to the implementation rules, if the Secretary for Security has reasonable cause to suspect that any property specified in the notice will be removed from Hong Kong, the secretary may in the notice give a direction that a police officer may, for the purpose of preventing the property from being removed from Hong Kong, seize the property.

According to section 1 of Schedule 3 to the implementation rules, offence related property includes the property of any person who commits, or attempts to commit, participates in or facilitates the commission of, an offence endangering national security.