Shares in Chinese e-cigarette firms slide after state media report | Reuters

2021-12-30 11:31:01 By : Ms. Rose Li

Pods of different flavors are seen on display at an authorized reseller store of Chinese e-cigarette company Relx in Shanghai, China July 24, 2019. REUTERS/Aly Song/File Photo

SHANGHAI, Aug 5 (Reuters) - Shares in Chinese vaping firms slid on Thursday after state media reported many minors are able to purchase e-cigarettes in the country despite a ban on sales to under-18s and cited an expert as saying a tougher crackdown was needed.

Huabao International Holdings Ltd (0336.HK) tumbled 8% in morning trade, while China Boton Group Co Ltd (3318.HK) fell 4%. Relx Technology Inc (RLX.N) closed almost 5% lower in New York after the report by Xinhua news agency was published.

Xinhua news agency said its reporters made unannounced visits to e-cigarette shops in the northern cities of Tianjin and Shenyang and found that while all had signs stating sales to minors were prohibited, enforcement of the law varied in practice.

One unidentified salesperson told Xinhua their store did not typically ask for proof of age, unless the customer was obviously very young.

Another vendor contacted by Xinhua on the social media platform WeChat did not ask for the buyer's age or ID.

"E-cigarettes pose a safety hazard to minors, and further efforts should be made to crack down on the sale of e-cigarettes to minors," Xinhua quoted Fu Jia, director of Tianjin Lawyers Association's professional committee for the protection of minors.

The Xinhua report comes as Chinese authorities have cited the need to improve the protection of minors and other state media have criticised the video gaming sector. read more

Regulators this year have also upended norms for the technology, education and property sectors, putting investors on edge over what other industries may next be in line for further oversight.

E-cigarettes can be used as a way to quit smoking tobacco but they also contain addictive nicotine. The World Health Organization warned in a report last month they "may act as a 'gateway' to tobacco consumption" for young people. read more

China is the world's largest consumer of tobacco products with more than 300 million smokers, according to the WHO report.

Our Standards: The Thomson Reuters Trust Principles.

Subscribe for our daily curated newsletter to receive the latest exclusive Reuters coverage delivered to your inbox.

Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.

Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.

The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.

The industry leader for online information for tax, accounting and finance professionals.

Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.

Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.

Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.

All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.