Jimmy Lai, 71, owns the Apple Daily tabloid, known for his commitment to the pro-democracy movement and for his criticism of the Beijing-aligned Hong Kong executive.

Hong Kong tycoon Jimmy Lai, a prominent figure in the pro-democracy movement, was arrested Thursday as part of a fraud investigation, in one of Beijing's many dissident and critical judicial proceedings in the former British colony. The 71-year-old man and two of his top executives, Royston Chow and Wong Wai-keung, appeared in court on charges of fraud.

According to court documents, the case is related to the fact that the headquarters of the newspaper would allegedly be being used for purposes not provided for in the building's rental agreement. Hundreds of police officers conducted a spectacular search of the building in August, including the writing of the Apple Daily.

Several members of the press group, including Lai, were arrested on suspicion of "collusion with foreign forces" under Beijing's new national security law in its semi-autonomous region in late June. So far, none of them were formally charged under this law, but an investigation is ongoing.

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In jail

On Thursday, the court examining the fraud charges rejected Lai's bail application, but did grant it to Wong and Chow, setting the next hearing for April. This means that the wealthy businessman, who was photographed by the media in handcuffs upon his arrival in prison, will spend the next few months behind bars.

Beijing has been taking back control for several months, particularly thanks to the security law passed in June, of this former British colony, which in 2019 suffered its worst political crisis since its transfer to Beijing in 1997.

Several opposition figures are prevented from appearing in legislative elections, which have been postponed for a year on the pretext of coronavirus-related risk. In addition, several members of Parliament were stripped of their mandates and all the opposition resigned in solidarity with them.

Dozens of pro-democracy activists were also charged or arrested. On Wednesday, three prominent figures from the pro-democracy movement, including Joshua Wong, were sentenced to prison for their participation in the 2019 protests.

Lai is also being prosecuted for her role in the protests in a separate case. In the middle of the year, several Western countries condemned the arrest of Lai, owner of the Next Digital media group, and denounced an attack on freedom of expression.

Chinese state media often call him a "traitor" and consider him the instigator of the 2019 protest. Lai arrived clandestinely in Hong Kong with his family at the age of 12 aboard a ship from Guangzhou. He worked first in the factory, then learned English and opened his own textile business. After the suppression of the Tiananmen uprising in Beijing in 1989, which he said transformed his political vision, he founded Next Media in 1990.

• Next Digital Ltd