LONDON: China’s decision to allow families to have three children could produce a windfall for makers of strollers, car seats and baby formula. At least, that’s what investors think.
Stocks tied to baby products and maternity services soared in mainland China and Hong Kong on Monday after the Chinese government announced a major change to its family planning policy as the country tries to avert a demographic crisis.
Shares of Goodbaby, which makes children’s products, jumped 31% in Hong Kong. Suzhou Basecare Medical Co., which offers genetic testing for couples looking to undergo IVF, rose 15%.
China’s one-child policy was in place for more than 35 years as Beijing tried to address overpopulation and alleviate poverty.