China has joined a handful of countries in banning flavored vapes to combat underage use of nicotine. Starting October 1, e-cigarette companies are only allowed to sell tobacco-flavored vapes in the country, an effort by the government to “standardize” the production, sales and consumption of the novel tobacco product.
China’s e-cigarette makers had a short-lived boom before regulators began reining in the lucrative industry around three years ago. First, it was a ban on the online sales of vapes. Then in May this year, a set of comprehensive regulations went into force, effectively subjecting e-cigarettes to the purview of China’s tobacco authorities.
The ban is long in coming and investors anticipated the change. Relx, which as of 2020 commanded 70% of China’s pod vape market, has lost over 95% of its stock value since its debut on NYSE in January 2021. Shares of Smoore, a major manufacturer of vaping devices based out of Relx’s home city of Shenzhen, are down 90% since hitting an all-time high in January 2021.
A ban on flavored vapes is like a death knell to …
