Smoore jumps as China set to impose consumption tax on e-cigarettes

China Boton

26/10/2022 05:11

** Shares of China's vaping device maker Smoore
International  6969.HK  lead rally among Hong Kong-listed
e-cigarettes and tobacco products makers 
    ** Smoore soars as much as 21.3% to HK$9.58, marks biggest
intraday pct rise since July 2020 
    ** Stock hits the highest since Oct 14 and set for a second
session of gains; third-biggest biggest percentage gainer in
Hang Seng Composite Index  .HSCI  
    ** China's Ministry of Finance will impose a consumption tax
on e-cigarettes from Nov 1, according to a notice published on
Tuesday, further entrenching the country's once-scattered
e-cigarette industry into the state-backed tobacco monopoly - a
major generator of tax revenue  urn:newsml:reuters.com:*:nL1N31Q0IL
    ** Analysts say profit of the industrial chain will return
to a reasonable level on implementation of the tax policy and
the compliance will be greatly improved, enhancing technological
innovation and digital development of the sector
    ** Shares of rivals China Boton Group Co Ltd  3318.HK  jump
8.6%, Huabao International  0336.HK  surge 6.9%, and China
Tobacco International  6055.HK  rise 6.2% 
    ** Hang Seng consumer goods and services index  .HSCGSI 
surges 2.8%, Hang Seng Composite Index  .HSCI  rises 2.6%, and
Hang Seng Index  .HSI  up 2.3%
    ** As of last close, Smoore shares down 80.1% this year
 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))