The 8 April 2016 introduction of new regulations affecting China’s online imports caused shares in Australian food and health businesses to fall, as investors sought clarity on how the rules may influence one of the country’s stronger sectors. In a statement released by the Department for Trade and Industry, it said that while Australia had been “very clear about our position regarding intellectual property protection”, there was no evidence that Chinese companies were using Australian vitamin maker Blackmore saw an 18.6% decline in share value, taking the company to a six-month low. Shares in Bellamy’s Australia, the infant formula exporter, fell 10.8% and the shares of dairy exporter MG Unit Trust fell 8.2%.
The 8 April 2016 introduction of new regulations affecting China’s online imports caused shares in Australian food and health businesses to fall, as investors sought clarity on how the rules may influence one of the country’s stronger sectors. Beijing’s higher import tax tariff for products bought on cross-border e-commerce platforms and the Chinese Government’s publication of a 1.2k product list of allowable imports prompted fears over a narrowing of scope of the $76bn Free Trade Agreement between China and its biggest trading partner, Australia. Australian vitamin maker Blackmore saw an 18.6% decline in share value, taking the company to a six-month low. Shares in Bellamy’s Australia, the infant formula exporter, fell 10.8% and the shares of dairy exporter MG Unit Trust fell 8.2%.