Shares in vitamin maker Blackmores and infant formula company Bellamy’s were falling hard following reports of more Chinese government intervention in online sales of foreign goods.
A short time ago, Blackmores shares were down another 9% to $159.40, adding to the 13.2% fall yesterday. They are still Australia’s most expensive shares despite the falls.
Bellamy’s shares were also down more than 9% to $9.01. a2 Milk, also a supplier of infant formula, dropped 5% to $1.615.
A new 11.9% value-added tax on foreign goods bought online came into force on Friday.
There are also reports the finance ministry will be stricter on which goods bought online can be imported through free trade zones in 12 cities.
Many of Blackmores and Bellamy’s products reach China via resellers who buy in Australia and sell in China online.
Both lines are in high demand in China because they are seen as safe and healthy brands.