Hong Kong authorities arrested five individuals on Wednesday after raiding two independent bookstores in the Mong Kok district.
The operation targeted Have A Nice Stay, a bookshop founded by former journalists, and Greenfield Book Store.
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Police said the arrested individuals, two men and three women, are suspected of displaying and selling publications with seditious intent.
The case was flagged by customs officials after they uncovered suspicious overseas shipments containing the materials.
The publications were seized from the retail premises during coordinated street operations.
Authorities allege the materials breached the 2024 national security law by stirring up hatred against the local government, judiciary, and law enforcement.
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This marks the third crackdown of its kind in the region since March. Independent booksellers have reported increasing regulatory and financial pressure under the city's tight security rules.
Officials defend the measures as necessary steps to maintain regional stability. However, a clear boundary on banned material remains unspecified by the administration.
Have A Nice Stay bookstore had already announced its closure planned for August 30 due to financial challenges and political uncertainty.
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In a social media post, the store stated, "The old days are no more: Hong Kong goes quiet as security laws tighten their grip."