Chinese childcare stocks surge on subsidy talks, birth rate push

Published 17/03/2025, 05:16
© Reuters.

Investing.com-- China on Sunday unveiled a comprehensive "special action plan" to bolster domestic consumption, which includes introducing childcare subsidies and encouraging higher birth rates.

China announced the relaxation of its family planning policy, allowing married couples to have up to three children, an increase from the previous limit of two. This policy shift aims to address the nation’s declining birth rate and aging population.

In response, shares of companies catering to children’s products experienced notable gains.

As of 04:07 GMT, Jinfa Labi Maternity & Baby Articles Co Ltd (SZ:002762), a producer of infant products, saw its shares jump 10.1%.

Milk powder maker Beingmate Baby & Child Food’s (SZ:002570) stock climbed 10%, while baby products manufacturer Shanghai Aiyingshi Co Ltd (SS:603214) also surged more than 10%.

Shares of toy manufacturer Goldlok Toys Holdings Guangdong (SZ:002348) gained 1.7% after jumping 5.5% in the previous session.

This policy adjustment follows previous measures, such as the 2016 shift from the one-child to a two-child policy. The latest move underscores the government’s efforts to encourage larger families and mitigate demographic challenges.

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