China’s Baby Care Industry Expands Benefits From the Three-child Policy

After the country unexpectedly decided to allow all couples to have a third child,

Chinese baby-related stocks rose for the second day in a row.

chinese baby

Dairy products company Beinmei Company rose 10% in Shenzhen,

while fertility clinic service provider Blonde Rabbi Maternal and Child Products Company rose by a similar amount.

Shares of Hubei Goto Biopharm Co.,

a manufacturer of steroid hormone active pharmaceutical ingredients,

soared 6%, and baby products retailer Shanghai Aiyingshi's shares rose 10%.

  Analysts say that China’s newborn policy will promote companies ranging from baby product manufacturers to maternity service providers.

Citi expects that the new regulations will benefit lower-tier cities due to the lower cost of raising children.