China Tobacco Monopoly Administration: Guide the electronic cigarette industry to be moderately concentrated in regions with industrial foundations and conditions.

According to the Securities Times app, on July 3rd, the State Tobacco Monopoly Administration issued several policy measures (trial) to promote the legalization and standardization of the electronic cigarette industry. The document points out that based on the current situation of the electronic cigarette industry and in line with the national regional development strategy, it will guide the electronic cigarette industry to moderately concentrate in areas with industrial bases and conditions, strengthen control over raw material channels, and reasonably guarantee the supply of raw materials for electronic cigarette production. It will adjust and optimize the industrial structure, strictly control new production capacity, reasonably control production capacity scale, and prevent overcapacity. Guided by optimizing resource allocation and meeting market demand, it will keep the concentration of the industry at a reasonable level and guide companies that do not adapt to market competition to exit in an orderly manner.