HK Stock Market Move | HUABAO INTL (00336) surged over 12% in the afternoon as the domestic HNB regulatory framework further takes shape, with its tobacco flavor business expected to benefit.

HUABAO INTL (00336) rose over 12% in the afternoon. As of press time, it was up 12.16% at HK$3.46, with a turnover of HK$54.8748 million. On the news front, at the end of July, the State Tobacco Monopoly Administration officially released a draft for public comment on the mandatory national standard for "Heated Cigarettes," which is proposed to take effect six months after its official release. Industrial noted that the draft explicitly sets out specific requirements for cigarette sticks, smoking devices, and aerosols for the first time, further shaping the domestic HNB regulatory framework. Domestic HNB will still revolve around the China Tobacco system and the tobacco materials supply chain, benefiting suppliers with China Tobacco customer resources, full-series product capabilities, and first-mover verification advantages. Northeast noted that demand growth in the domestic cigarette market is facing significant pressure, making the liberalization of HNB a necessary option to rescue the domestic tobacco market. The public consultation on the heated cigarette national standard marks China's HNB industry moving from a "policy ambiguity period" into a "rules clarity period." The development of HNB and oral nicotine pouches brings new demand for flavors, which is conducive to the company's tobacco flavor business development.