
Currently, there have been over 40 listed companies that have launched hemp derived CBD (cannabidiol) extraction projects. However, there is significant uncertainty as to whether and when the domestic application, relevant policies, and demand side of industrial hemp extracts will be liberalized in China and therefore some enterprises have given up on their projects. So far, Jilin Zixin, Hunan Fangsheng and Fuan Pharmaceutical have continued research and development; however, Hunan ER-KAN, Shouxiangu, and Huaren Pharmeceutical have announced the termination of their projects. Tianfeng Securities expects the penetration of industrial hemp and its extracts will continue to increase in consumer applications in 2020, with a second wave of new CBD project leaders emerging in the market. (Source: Shukangzhengxun)