Phoenix News Hong Kong Stock | After several days of continuous gains, e-cigarette concept stocks showed a correction. Smore (06969) fell 5.24%; China's Bolton (03318) fell 4.56%; BYD Electronics (00285) fell 3.77%; and Huabao International (00336) fell 2.67%.

Huaan Securities believes that considering the harm-reducing nature of e-cigarettes, in the context of the “Tobacco Monopoly Law” where e-cigarettes refer to cigarette policies, the comprehensive tax rate for e-cigarettes may be lower than cigarettes. Referring to Japan's tax experience with new types of tobacco, its tax rate may be levied at around 80% of the cigarette tax rate. Tobacco taxes continued to improve after Japan imposed a tobacco tax.