Shares in companies exporting vitamins and milk powders to China surged on Tuesday as new reports eased fears that China would make it harder to sell goods through online channels.
Shares in vitamins supplier Blackmores lifted by 13.1 per cent to $113.68, baby formula supplier Bellamy's Australia surged 15.7 per cent to $4.42, and milk and infant formula supplier The A2 Milk Company lifted 4.5 per cent to $2.57
A spokesman for A2 Milk said it had been speculated that from January 1, 2018, a tightening of Chinese regulations would have prevented some Australian-branded product being sold in the cross-border e-commerce channels.
That now appeared not to be the case, with China's Ministry of Commerce releasing a statement on Sunday night saying that from 2018 the cross-border trade for food products would largely continue as it is, the spokesman said.
A2 Milk head of Australian and New Zealand operations, Peter Nathan welcomed the updated regulations.
"It signals a strengthening of the commitment to the cross-border e-commerce channel from the Chinese regulators," Mr Nathan said.
The Fairfax Media-owned Australian Financial Review reported on Tuesday that Beijing's decision for now not to toughen the cross-border e-commerce laws was a surprising backdown as Australia prepares to host Chinese Premier Li Keqiang in trade talks.
News Corp's The Australian reported that Chinese online retail giants Alibaba and JD.com had persuaded the Chinese government to keep the cross-border e-commerce model essentially intact.
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