The U.S. Department of Justice announced on Thursday that it will immediately relax restrictions on certain cannabis products and is moving swiftly to reclassify marijuana as a less dangerous drug. This represents one of the most significant shifts in U.S. drug policy in decades. While the change does not legalize marijuana nationwide, it is expected to significantly reshape the $47 billion industry. Although most U.S. states have already legalized marijuana in some form for medical use, and nearly half have legalized it for recreational purposes, the industry continues to face major hurdles at the federal level. Under the new classification, state-regulated medical cannabis products will be moved from the same category as highly addictive substances like heroin to a less restrictive category. This category includes substances with a low-to-moderate potential for abuse, such as common painkillers, ketamine, and testosterone. Cannabis products approved by the U.S. Food and Drug Administration will also be included in this group.
Hong Kong-listed stocks related to U.S. cannabis policy include: **Jiayao Holdings (01626)**: The group has issued announcements stating its continued focus on the health and wellness and biopharmaceutical sectors in recent years. The group formally commenced operations related to cannabidiol (CBD) in April 2026. Currently, the group is primarily engaged in sourcing CBD from China and export business, with its products mainly sold to skincare, daily chemical, and pharmaceutical companies in Europe and North America. A dedicated operations team has been established for this business, with core members possessing relevant industry experience. **Smoore International (06969)**: The company's client portfolio includes multinational tobacco groups such as Japan Tobacco, British American Tobacco, Reynolds Asia-Pacific, RELX, and NJOY, as well as leading global e-cigarette enterprises. As a leader in the CBD sector, Smoore is positioned to benefit from the growth of the expanding legal cannabis market. The company plans to actively develop clients in the medical and healthcare fields, aiming to innovate drug delivery methods for applications in treating diseases such as asthma and COPD (chronic obstructive pulmonary disease).
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