Shares of e-cigarette related companies continue to rally in Hong Kong on policy visibility

 

>>REAL-TIME UPDATES IN THE WIRE. CLICK HERE<<<

 

 

Shares Smoore International skyrocketed about 28% to HK$11.8, before closing the morning session 17.7% higher. Huabao International (00336.HK) surged 11.5% before closing 2.9% higher, and China Boton (03318.HK) leaped 9.4%. 

China on Tuesday imposed a consumption tax on e-cigarettes starting on November 1, with the tax rates on production and imports at 36%, and 11% on wholesale, according to a notice issued by three government departments including the Ministry of Finance.

Notably, the export tax refund and exemption policy will remain applicable for taxpayers exporting e-cigarettes, read the notice. The industry will be continue to benefit from the tax rebate policy as exports accounted for more than 90% of the entire market, industry insiders say.