UPDATE 1-China regulator orders e-cigarette makers to halt new plants

China's State ​Tobacco Monopoly Administration issued ‌a ​notice on Friday aimed at curbing price wars in the e-cigarette ‌industry, directing manufacturers to address overcapacity by suspending investment projects and the building of new production plants.

"The capacity utilisation ‌rate is at a high level," the notice said, ‌while warning e-cigarette makers against trying to skirt the instruction by building new facilities ostensibly for the production of other products ⁠that ​are in ⁠fact manufacturing e-cigarettes. KEY DETAILS: * Producers should only invest in new projects and increase ⁠production capacity if it is really necessary and/or they can ​prove the focus is on manufacturing e-cigarettes for export

* Notice ⁠prohibits e-cigarette makers from shifting supply quotas to other unlicensed companies ⁠and ​expanding production capacity by seeking fresh investment to make other products to disguise e-cigarette output * E-cigarette makers are ⁠allowed to reorganise their production capacity through mergers

* The production line ⁠and ⁠approved production capacity of e-cigarettes should be strictly distinguished from heated cigarettes and smoking utensils

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