Blackmores Limited (BKL) has seen weakness in share price following the announcement of changes to Chinese regulations and the creation of a list of eligible items to be imported via the cross-border e-commerce platform on 7 April 2016. Recent media speculation on this issue has contributed to the sharp price drop for BKL during the past two days. We have had a very recent discussion (11/4/16) with management on the media speculation and changes to e-commerce regulations and based on the current facts we don't believe this is likely to impact the business or earnings in the medium term. Management confirmed that they do not expect a sizable impact on the development of the approved list as they believe that most of their products are categorised as permissible items. However, management awaits more clarity from the Chinese government which we will be monitoring closely in the coming days. Further, we expect more insight from BKL's quarterly trading update this month followed by a shareholder briefing in May.