Core Points - The Chinese government will ban the production of mercury thermometers and blood pressure monitors starting January 1, 2026, in compliance with the Minamata Convention on Mercury [1][3] - The ban is driven by the toxic nature of mercury and its environmental hazards, with a standard mercury thermometer containing about 1 to 2 grams of mercury, which can significantly exceed safe concentration levels if broken [1][3] - Following the announcement, there has been a surge in demand for mercury thermometers on e-commerce platforms, leading to stock shortages due to their low price compared to electronic alternatives [1][8] Policy Background - The ban is part of China's commitment to the Minamata Convention, which took effect in China on August 16, 2017, and was further detailed by the National Medical Products Administration in October 2020 [3] - The environmental and health risks associated with mercury, including irreversible damage to the nervous system and kidneys, particularly in vulnerable populations like children and pregnant women, are key considerations for the ban [3] Market Reaction - E-commerce platforms like JD.com and Taobao have reported limited stock and shortages of mercury thermometers following the announcement of the ban [3] - The price of mercury thermometers is generally under 10 yuan, while electronic thermometers range from tens to hundreds of yuan, creating a significant price difference that drives consumer behavior [8] Company Responses - Companies such as Yuyue Medical (002223), Jiuan Medical (002432), and Kefu Medical (301087) have indicated that the impact of the ban on their businesses will be limited, as the share of mercury products in their portfolios is small [9][10] - Yuyue Medical, once a leader in the mercury blood pressure monitor market with an 85% market share, has transitioned to electronic products and reported a revenue of 7.972 billion yuan in 2023 [9] - Jiuan Medical stated that it is not a traditional thermometer manufacturer and has minimal exposure to mercury products, suggesting that the exit of mercury products may create opportunities in the electronic thermometer market [10] Industry Outlook - The global blood pressure monitor market is projected to grow from 2.15 billion USD in 2025 to 3.97 billion USD by 2032, with a compound annual growth rate of 9.2% [10] - The market for electronic thermometers and infrared measuring devices is expected to expand as consumer preferences shift away from mercury products [10][12] - Major players in the electronic blood pressure monitor market include Omron and Yuyue, with domestic brands like Jiuan and Kefu gaining market share through e-commerce strategies [12]