HONG KONG (Reuters Breakingviews) – Accurate views on global finance in the Covid-19 era.
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MAKING IT DONE. Just two months after the first e-cigarette maker Rlx Technology in New York, Beijing has fallen to a further level of vaping. Following a ban on online sales of e-cigarettes in 2019, the Ministry of Industry and Information Technology on Monday proposed to regulate the industry similar to the state-controlled tobacco sector, citing “new problems” anonymous in the current rules. That could mean special licensing requirements and much higher fees of up to 65%, instead of the 13% value-added rates that companies currently pay.
That could reduce some fiscal pressure among Covid-19, but it could also put companies out of business. The news took $ 14 billion away from Rlx market value overnight, halving the capitalization. Rival Smoore trading stocks in Hong Kong fell 27% on Tuesday. With the lack of detail, it is possible that markets have overvalued, but Rlx is still trading at 81 hours predicting earnings even after news. This could be bad for the health of investors. (Le Yawen Chen)
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