The A2 Milk Company Ltd (ASX: A2M) share price has edged lower this morning following developments in China on Thursday.
The fresh milk and infant formula company's shares dropped 2% to $13.28 in early trade.
What happened?
Late on Thursday China's State Administration of Market Regulation (SAMR) and other ministries and bureaus released an announcement outlining measures to ensure successful implementation of the e-commerce legislation which became effective in April 2019.
This morning a2 Milk Company responded to the development, advising that the measures relate to all goods and services transacted via e-commerce platforms.
Management explained the announcement: "references an intention to increase the focus on supervision and enforcement of the ecommerce legislation and in the process, standardise e-commerce business practices, enhance the integrity of the digital market trading environment (including advertising and marketing), and maintain a good ecommerce market order."
Furthermore, it references an intention to ensure that no counterfeit products are being transacted through all e-commerce platforms, including social media platforms and cross-border e-commerce channels.
Although its shares have drifted lower, the company's managing director and CEO, Jayne Hrdlicka, appears to see this news as a positive.
She said: "We welcome measures that protect the rights and safety of consumers and the overall integrity of ecommerce channels and will continue to work closely with our partners through this process."
Elsewhere, the Bubs Australia Ltd (ASX: BUB) share price is down 1% today, but the Bellamy's Australia Ltd (ASX: BAL) share price has pushed higher.
Also on the move today is the Wattle Health Australia Ltd (ASX: WHA) share price which has risen 1% after providing an update on its Blend & Pack acquisition.
It has signed an extension until July 31 to complete the proposed acquisition of the CNCA accredited manufacturing facility. Wattle Health required the extension as it continues to work with funders to finalise the acquisition's funding package.
