HONG KONG (BLOOMBERG) - Hong Kong media tycoon and Next Digital founder Jimmy Lai has been granted bail by Hong Kong's High Court, local media including the Apple Daily newspaper reported.

Lai was charged earlier this month with colluding with foreign forces under the city's new national security law. He is the owner of the pro-democracy Apple Daily.

Lai was released on HK$10 million (S$1.7 million) bail, Apple Daily said.

He must also hand over his travel documents and is forbidden from taking meetings with foreign politicians, giving any interviews and posting and commenting on social media, the paper reported.

He will be confined to his home and be required to report to police three times a week under the bail terms, according to Apple Daily.

Hong Kong's Department of Justice is appealing against the court's decision, Apple Daily's report said.

Shares of Next Digital jumped as much as 15 per cent after the reports of Lai's bail. Hong Kong residents have in recent months piled into shares of the company to show support for Lai.