Tighter regulation expected in e-cigarette market

Doubts arise as health scare shrouds future of segment that investors back

Investors backing Chinese firms involved in the manufacturing, sales and distribution of electronic cigarettes may want to be cautious as regulations could be tightened in the wake of recent health scares, experts warned.

A report from Tsinghua University showed China produces 95 percent and exports 90 percent of e-cigarettes in the world, which determines its pricing power in the global market.