In depth: Investors dump China's vape-makers

Beijing regulators look to apply tobacco law

20210324 Caixin China vape RC1B4EE7C690

Chinese authorities on Monday published draft amendments to the Tobacco Monopoly Law that would extend its jurisdiction to e-cigarettes. © Reuters

FLYNN MURPHY and SHEN XINYUE, Caixin

Investors in China's two largest e-cigarette companies ran for the exits after Beijing signaled the controversial products will be treated more like tobacco cigarettes.

Shares of China's biggest vaping company, RLX Technology, dove almost 48% on Monday. The firm, which raised $1.4 billion with a New York Stock Exchange listing two months ago, does most of its business on the Chinese mainland.

Sponsored Content

About Sponsored ContentThis content was commissioned by Nikkei's Global Business Bureau.