Shares in Chinese e-cigarette firms slide after state media report (updated)

China Boton

05/08/2021 04:49

(Recasts with share price moves)
    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.  urn:newsml:reuters.com:*:nL1N2PB0DK 
    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.  urn:newsml:reuters.com:*:nL8N2P35KM
    China is the world's largest consumer of tobacco products
with more than 300 million smokers, according to the WHO report.
    
 

 (Reporting by Brenda Goh and Tom Daly; Editing by Sandra Maler
and Edwina Gibbs)
 ((tom.daly@thomsonreuters.com; +86 10 5669 2119;))