Taking Away The Drug Hats, Cannabis Legal Business Is Becoming A Good Business.

Good news from the corporate and policy level is taking China's "cannabis concept stocks", and more and more companies around the world want to play an important role in the field of cannabis.

Some good news from the corporate and policy level is taking China's "cannabis concept stocks".

In February 20th, the biological pharmaceutical company, Camby Bay (600572) announced that its group of 3 subordinate companies have recently won the "Yunnan industrial hemp cultivation license" and approved a total of 24 thousand acres of industrial hemp cultivation area, indicating that the main business for biomedical, health food companies in the industrial hemp industry has made substantial progress.

Driven by this heavy news, the 21 day, 22, and two days, the stock price closed, and the closing price for 22 days was 7.43 yuan / share.

As one of the earliest cultivated "five grains", cannabis has been cultivated in China for nearly 6500 years.

However, because cannabis contains four hydrogen cannabinoids (THC) used to make stimulants and drugs, cannabis cultivation was once controversial.

Industrial hemp is a low toxic THC with a content of less than 0.3%. It is a valuable economic crop.

In addition to the news that the company intends to develop industrial hemp business, the paper company Shun Hao shares (002565) has been trading on 4 consecutive days, and the share price of the international pharmaceutical company (02327) has also risen sharply.

Other industrial hemp concept stocks, such as Galaxy biotech (000806), purple Xin Pharmaceutical (002118), Tianjin magnetic card (600800), and Dongfeng shares (601515), have also stepped up.

China increases industrial hemp cultivation

The background of the influx of cannabis is that more industrial areas have been planted in China.

Lv Jiangnan, a researcher at the Institute of hemp research, Chinese Academy of Agricultural Sciences, told the finance and economics reporter that in China, Northeast China, Henan, Anhui and other places all had the history of planting industrial hemp. In 2010, Yunnan began to grow large scale industrial hemp.

Industrial hemp can be applied to medicine, food, health care products, paper products, etc.

In China, cannabis was first recorded in Shennong's Materia Medica, which has been used as a traditional Chinese medicine for a long time.

Lv Jiangnan said that industrial hemp is mainly used in textiles in China, and hemp fiber has good air permeability, softness and bactericidal effect.

Internationally, the application of cannabis in pharmaceuticals is being recognized by more and more people.

The functional component, hemp two phenol (CBD), has the pharmacological effects of antispasmodic, anti anxiety and anti-inflammatory. Hemp two phenol has been recognized by WHO at the end of 2017, and has been listed as an uncontrolled substance in the international list.

Brightfield Group predicts that the global value of hemp two phenol industry will rise from 5 billion 700 million US dollars in 2019 to 18 billion 100 million US dollars in 2021.

According to the reporter, China is already the largest exporter of hemp paper and textile materials in the world. It is the largest industrial hemp plant area in the world. It accounts for about half of the world's industrial hemp planting area. 309 of the 606 patents related to cannabis in the world come from Chinese enterprises and individuals.

China has so far ruled and supervised industrial hemp cultivation only in Yunnan and Heilongjiang.

In 2010, Yunnan Province promulgated the "Yunnan Province Industrial cannabis cultivation and processing license regulations", which requires the cultivation and processing of industrial hemp to obtain a permit, and has made detailed requirements for pportation, storage and operation, and the relevant approval and supervision are all responsible by the public security department.

The above provisions apply only to industrial hemp whose content is less than 0.3% of THC, and the laws and regulations of drug control are applicable to more than 0.3% of the products.

The promulgation of this regulation has made rapid development of the cannabis industry in Yunnan. In order to avoid confusion with drugs and cannabis, Yunnan hemp enterprises began to call industrial hemp with "hemp" or "hemp".

Heilongjiang in 2017, the new Heilongjiang anti drug regulations, clearly defined the distinction between industrial hemp and cannabis, and requested that the cultivation, planting, processing and sale of industrial hemp be recorded.

At present, Jilin is becoming the third Province in China to excavate cannabis business after Yunnan and Heilongjiang.

In 2018, Jilin indicated that it would liberalize industrial hemp research, breeding, industrial planting and industrial product processing.

In January 2019, the Jilin Academy of Agricultural Sciences and Holland Fytagoras company, which had planted innovative technology, began a cooperation, hoping to develop the industrial hemp industry into a new economic growth point for Jilin.

All these provinces expect that industrial cannabis cultivation and development can cater for actual demand and drive local economic development.

The global application and legalization of cannabis

In China, the concept of cannabis is mainly divided into industrial hemp and drug cannabis, and cannabis is strictly prohibited by law. Industrial hemp is the direction of industrial development.

In the announcement, he said that the processing technology research and product development of the extracts of cannabis two phenols and other active ingredients from industrial hemp should be done in order to find new profit growth points.

In Canada and the United States, the western countries that continue to promote the legalization of cannabis, the concept of cannabis mainly involves medical marijuana and recreational hemp. Cannabis in medical marijuana has a higher content of two phenol and four HNP in recreational cannabis.

In October 17, 2018, the Canadian federal government legalized recreational cannabis and became the second official country to formally legalize marijuana after Uruguay.

Some states also permit the use of cannabis in the United States. By the end of 2018, the United States had legalized medical marijuana in 33 states and legalized recreational cannabis in 10 states.

According to statistics from the media "Dr. Han Ma", at present, 32 countries in Holland, Australia and other countries have realized the legalization of medical marijuana, and 9 countries in the United Kingdom, New Zealand and other countries have realized the legalization of some medical marijuana drugs norms.

One important reason for the legalization of cannabis is that the market of cannabis is so large that it is difficult to completely prohibit it.

In Canada, for example, 44% of Canadian people over 14 years old have used marijuana at least once.

In 2017, Canadians spent up to 5 billion 700 million Canadian dollars on recreational and medicinal marijuana.

In 2015, Canadian Prime Minister tellu said that the legalization of cannabis is not to connive at crime, but to control the production and sale of cannabis, so as to protect young people and crack down on drug traffickers.

Therefore, although Canada has legalized cannabis, all provinces and autonomous regions can make detailed rules on their own, limiting the use of age, place, production, sales and many other aspects.

Over the past two years, with the gradual liberalization of relevant laws and policies, the concept of "cannabis" has been highly sought after in the world.

Some international consumer giants, such as Coca-Cola and HeineKen beer, all expressed interest in the development of cannabis products.

Among them, HeineKen beer has already made the first move. Its Lagunitas brewing company launched a bubble water containing hemp elements in 2018. Some small brands, such as Kiva food, also introduced cannabis and other foods.

According to Arcview, a market research firm, sales of legal marijuana in North America in 2017 amounted to $9 billion 200 million, and in 2027 10 years, this figure will exceed $47 billion.

Globally, although the exploration of commercial value of legal marijuana is still in the early stage of development, it is developing rapidly, and cannabis is becoming a new industry hotspot.

A report on cannabis market provided by finance and economics shows that in the next ten years, a series of legal cannabis products that meet consumer demand will change the market.