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Surprise ruling comes weeks after the media mogul was convicted and jailed for 20 years on national security charges.

A Hong Kong appellate court has overturned a fraud conviction against pro-democracy media tycoon Jimmy Lai in a surprise ruling weeks after his jailing for 20 years on a separate national security charge.

The ruling by the Court of First Instance on Thursday said that it allowed the appeal from Lai and ⁠another defendant in the case to proceed as a lower court judge had “erred”.

“[We] allow the appeals, quash the convictions and set aside the sentences,” the judges wrote.

The conviction that was overturned was from an earlier fraud case in which prosecutors alleged that a consultancy firm operated by Lai, 78, for his personal use had taken up office space that his now defunct media business – Apple Daily – rented for publication and printing purposes.

This was in breach of the terms of the lease Apple Daily signed with a government company and amounted to fraud, prosecutors said.

Lai had been sentenced to five years and nine months in prison in 2022 on the two fraud charges.

Former Apple Daily executive Wong Wai-keung was also charged in the same case and jailed for 21 months.

Judges at the Court of Appeal wrote in their judgement that while Apple Daily Printing had breached the lease terms by allowing the firm to use part of the space, it didn’t owe a duty to disclose its breach. They said even if it had owed and breached that duty, the same could not be attributed to Lai and Wong as a matter of law.

The trial judges’ “reasoning in concluding that the applicants were liable for the concealment as the prosecution contended is unsupportable”, they said.

Neither defendant appeared in court.

The ruling would slightly reduce Lai’s total prison time. The judges handling Lai’s national security case allowed the two sentences to be served concurrently for only two years, with the other 18 years to be added after the fraud sentence.

The lengthy sentence – over ‌two counts of conspiracy to collude with foreign forces and one for publishing seditious materials – has raised concerns that he could spend the rest of his life in prison.

Lai’s children have expressed hopes that a visit by United States President Donald Trump to Beijing could help secure the release of their father, a British citizen. The White House has confirmed that Trump will travel to China on March 31 through April 2 to meet Chinese leader Xi Jinping.

United Kingdom Foreign Secretary Yvette Cooper has said Lai was sentenced for exercising his right to freedom of expression and called on the Hong Kong authorities to release him on humanitarian grounds.

Chinese and Hong Kong authorities have defended Lai’s sentencing in the national security case, saying it reflected the spirit of the rule of law. They also insisted the security law is necessary for the city’s stability.

In a separate ruling on Thursday, a Hong Kong court sentenced the father of a wanted pro-democracy activist to eight months in prison under the city’s national security law for attempting to withdraw funds belonging to an “absconder”.

Kwok Yin-sang, 69, was found guilty on February 11 for “attempting to deal with, directly or indirectly, any funds or other financial assets or economic resources” after he tried to terminate his daughter Anna Kwok’s insurance policy and withdraw the funds.

He is the first person in the city to be charged and convicted of the offence.

He had pleaded not guilty and did not testify at the trial.

Feb. 24 (UPI) — Panama authorities have taken control of two ports operated by a subsidiary of a Hong Kong company, assets that came under scrutiny after President Donald Trump claimed China exerted too much influence over their operation.

Hong Kong-based conglomerate CK Hutchison Holdings condemned the Monday takeover in a statement on Tuesday that said the actions of Panama were “unlawful” and raised risks to the operations, health and safety of the Balboa and Critobal terminals that its subsidiary, Panama Ports, has been operating for decades.

“None of the actions by the Panama State were advised to or coordinate with PPC,” Hutchison Holdings said.

“The Panama State is responsible for harm and damage caused by the confiscatory actions it has taken.”

On Monday morning, Panama’s official gazette published a late-January Supreme Court ruling that made final the court’s decision that the contract law granting Panama Ports Company’s concession extension to operate the ports was unconstitutional.

The ruling came in a pair of lawsuits filed challenging the contract, which was issued by the Maritime Authority of Panama on June 23, 2021. According to a statement from the Panama presidency’s office, the contract was found unconstitutional because it gave a foreign-based company broad rights that limited the state’s control over the use and management of its resources.

After the gazette was published, Panama authorities arrived at the two ports and informed representatives of the Panama Ports Company that it must cease operations, and that those who do not comply with their orders will be prosecuted.

“PPC and CKHH will continue to consult with their legal advisors regarding the ruling and forceful takeover, the purported termination of PPC’s concession and all available recourse, including additional national and international legal proceedings against the Republic of Panama and its agents and third parties colluding with them,” CK Hutchison Holdings said.

The two ports and their Hong Kong connection were thrust into the spotlight on the first day of Trump’s second presidency, when in his inaugural address he said the United States has been “treated very badly” by Panama and that “China is operating the Panama Canal.”

Trump has repeatedly made the claim since, drawing attention to the Hong Kong-based conglomerate that has operated the two ports since 1997.

CK Hutchison says the Panamanian government has taken ‘administrative and operational control’ of its two ports on the canal.

The government of Panama has seized control of two ports on either end of the Panama Canal from a Hong Kong conglomerate following a recent ruling by the country’s Supreme Court.

Hong Kong’s CK Hutchison said on Tuesday that Panama’s government had “made direct physical entry into the terminals at Balboa and Cristobal” and assumed “administrative and operational control” over the two ports on the Panama Canal.

The company said the “unlawful” takeover reflects the culmination of a campaign by the Panamanian state against its subsidiary, Panama Ports, following the Supreme Court ruling last month.

According to a government decree, the Panama Maritime Authority has been authorised to occupy the ports for “reasons of urgent social interest”, according to The Associated Press (AP) news agency.

The maritime authority also has the right to take over port property, including computer systems and cranes, according to the decree.

The state takeover marks the latest twist in a yearlong saga for CK Hutchison, which has been caught in a three-way fight between China, the United States, and Panama following US President Donald Trump’s return to the White House last year.

Starting in December 2024, Trump began to allege that the Panama Canal was being operated by China and promised to “take it back” – using military force if necessary – as part of a greater effort to reassert US dominance over the Western Hemisphere.

Last month, Panama’s Supreme Court ruled that CK Hutchison’s concession to operate the two ports was “unconstitutional” despite the company renewing its concession in 2021 for another 25 years.

The Chinese government’s Hong Kong and Macao Affairs Office (HKMAO) weighed in on the controversy, describing the ruling as “absurd” and “shameful”, while warning that the Latin American country would pay “heavy prices both politically and economically”.

Panama’s President Jose Raul Mulino responded, saying he “strongly” rejected China’s threat against his country and that Panama was a country that upholds the rule of law “and respects the decisions of the judiciary, which is independent of the central government”.

Feb. 23 (UPI) — A Hong Kong court has rejected the appeals of 12 pro-democracy lawmakers and activists seeking to overturn their convictions in connection with a 2020 unofficial election primary that Beijing-aligned officials said was intended to undermine the city’s existing political system.

The dozen people are members of the so-called Hong Kong 47, who were sentenced in November 2024 to between 51 and 120 months in what is still the largest case so far brought under the city’s draconian National Security Law.

Eleven of the activists were convicted during the trial, while one pleaded guilty.

The court on Monday rejected their appeals. For some, they have already served their sentences and been released from prison.

Lawrence Lau Wai-chung, a barrister and democracy activist, had been acquitted in the case, but the government had appealed the decision. The court on Monday upheld that decision.

The defendants were charged with conspiracy to commit subversion under the National Security Law that Beijing imposed on Hong Kong in connection with their unofficial primary.

Held in July 2020 amid the fraying of democratic norms in Hong Kong, the activists used the primary to coordinate candidates and win a pro-democracy majority in the city’s legislature, which prosecutors said they planned to use to veto budget bills to force the resignation of Hong Kong’s chief executive.

The primary was held following protests that erupted in Hong Kong in 2019 against extradition that grew into a broader pro-democracy movement following allegations of excessive force used by police against the protesters.

In response to the protests, China imposed a new national security law on Hong Kong in July 2020, and police arrested dozens of pro-democracy figures on Jan. 6, 2021, with 47 charged with conspiracy to commit subversion in late February of that year.

The government accused them of seeking to use the legislature, under the guise of democracy, to threaten Hong Kong’s political system.

Their convictions were widely condemned by democratic nations, including Britain, Canada and the United States. Washington vowed to impose visa restrictions on officials responsible for their sentencing.