Next Digital Shares Surge After Jimmy Lai Detention

Next Digital shares doubled on Friday morning as they resumed trading a day after its chairman Jimmy Lai appeared in court for alleged fraud and was denied bail.

The stock gave up some of the gains later in the morning session but was still about 50 percent higher.

Next Digital shares were suspended on Thursday as Lai, along with executive director Royston Chow and group administrative director Wong Wai-keung, appeared in court on fraud charges. They're accused of using the company's headquarters in Tseung Kwan O for purposes not allowed by the lease signed with Hong Kong Science Park.

Lai was remanded in custody until his next hearing on April 16 next year.

In a statement to the local stock exchange, Next Digital said it does not expect an immediate adverse impact on the group's daily operations because it's managed by a team.

Next Digital shares had a roller-coaster ride in August when police raided the Apply Daily headquarters in Tseung Kwan O, arresting Lai and others for alleged national security and other crimes. The stock soared more than 1,000 percent in a few days before falling. A month later, 15 people were arrested by the police on suspicion of price manipulation.