The popular e-cigarette industry has suddenly issued a major shortfall.
After 4 p.m. Monday, the Ministry of Industry and Information Technology website suddenly released a document that points directly to the regulation of new tobacco products such as e-cigarettes. In this Ministry of Industry and Information Technology, the State Tobacco Monopoly Bureau research and drafting of the “Decision on Amending the Implementing Regulations of the Tobacco Monopoly Law of the People’s Republic of China” (draft for public comment) “pointed out that electronic cigarettes and other new tobacco products with reference to the implementation of the relevant provisions of these regulations on cigarettes.
Once this article was released, the U.S.-listed e-cigarette giant Misty Core Technology plunged in the pre-market. After opening at 9:30 p.m. Beijing Time on Monday, the stock opened sharply lower and quickly moved lower, extending its decline to 40 percent (Update: Fog Core shares plunged 47.58 percent to $10.20 per share on March 22.) . Looking at the e-cigarette industry, in addition to Fog Core Technology, which has a market capitalization of more than 100 billion yuan, there is also Seymour International, which has a market capitalization of nearly HK$400 billion. The stock had a solid performance on Monday, and with the emergence of the negative, the stock is likely to panic as well.
Sudden heavy short
March 22, the electronic cigarette industry suddenly issued a heavy short.
According to the Ministry of Industry and Information Technology website, in order to strengthen the supervision of new tobacco products such as e-cigarettes, the Ministry of Industry and Information Technology, the State Tobacco Monopoly Bureau to study and draft the “decision on amending the “People’s Republic of China Tobacco Monopoly Law Implementation Regulations” (draft for public comment)”, is now open to the public for comment.
The “Decision on Amending the (Draft for Public Comments)” note introduces this amendment to the “Implementation Regulations”, which will add an article to the bylaws as Article 65: “Electronic cigarettes and other new tobacco products with reference to the relevant provisions of these regulations on cigarettes.” The main considerations are.
(a) to promote the regulation of electronic cigarettes rule of law. In recent years, electronic cigarettes and other new tobacco products market regulation in the field of a number of new situations, new issues, the community is very concerned about various aspects. The amendment is mainly to implement the Party Central Committee and the State Council on the promotion of the rule of law in the regulation of electronic cigarettes, to clarify the legal basis for the regulation of new tobacco products such as electronic cigarettes, and do a good job with the “Protection of Minors Law of the People’s Republic of China” and other laws and regulations, to play a good rule of law solid fundamental, stable expectations, the important role of long-term.
(B) in line with the characteristics of e-cigarette products and the prevailing international regulatory practices. In view of the new tobacco products such as e-cigarettes and traditional cigarettes in the core components, product features, consumption patterns and other aspects of homogeneity, new tobacco products such as e-cigarettes should be implemented with reference to the “implementing regulations” on cigarettes. This is also consistent with the main international countries and regions for electronic cigarettes and other new tobacco products in the regulatory manner.
(C) enhance the effectiveness of electronic cigarette regulation. Electronic cigarettes and other new tobacco products with reference to the implementation of the regulations on the implementation of the relevant provisions of the cigarette, will significantly enhance the regulatory effectiveness of electronic cigarettes, effective regulation of electronic cigarette production and operation activities, to address the existence of product quality and safety risks, false advertising and other issues, and effectively protect the legitimate rights and interests of consumers.
After the release of the above-mentioned document, the U.S. shares of e-cigarette leading fog core technology that plummeted on the market. After the stock opened sharply lower, the share price fell by more than 40% at one point.
(Update: On March 22, Fog Core shares plunged 47.58% to $10.2 per share.
E-cigarette segment panic?
In the stock bar of Hong Kong‘s leading e-cigarette Smokers International, investors have blown up, believing that the stock will also plunge on Tuesday.
According to brokerage China reporters, at least 43 funds (excluding QDII funds) had listed Seymour International as a top 10 long position as of year-end 2020.
Currently, Seymour International has a market capitalization of nearly HK$400 billion .
Information shows that Seymour International is the leading electronic fogging equipment .
In addition, according to the cloud financial data, electronic cigarette concept stocks also include Magmitech, and the Thai, Jinjia shares, surplus interest technology, lithium and other companies.
Some market participants believe that the current traditional tobacco companies are held by the central enterprise China Tobacco, and electronic cigarette companies are basically private, whether they can be included, in what form into the monopoly system are unknown, which there is no small investment risk. These risks will affect the expectations of the capital market.
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