E-cigarette concept stocks rose in early trading, as of press time$Smoore International Holdings Limited (06969.HK) $Rose 4.45% to HK $19.7; BYD Electronic (00285) rose 4.4% to HK $18.02; China Tobacco Hong Kong (06055) rose 3.59% to HK $11.54; Huabao International (00336) rose 1.72% to HK $4.13.

On the news, the website of the State Tobacco Monopoly Administration released "answers to questions related to administrative licensing and product technical evaluation of e-cigarettes" on June 2, revealing that in the near future, it will examine and approve and issue a number of tobacco monopoly production enterprise licenses of e-cigarette-related production enterprises that meet the administrative license conditions.

Zheshang Securities believes that the landing of domestic e-cigarette policies and measures is being methodically promoted, and from the perspective of regulatory attitude, it is more moderate than previously pessimistic market expectations. Considering that the penetration rate of domestic e-smokers is less than 2%, after the development of policies and norms, the demand for harm reduction will still ensure an increase in medium-and long-term permeability.