CHINA Firms see demand boost from China's three-child policy


Firms see demand boost from China's three-child policy

Global Times

14:29, June 01, 2021

Children wash toys at a kindergarten on the occasion of World Health Day in Xingtai City, north China's Hebei Province, April 7, 2021. (Photo: Xinhua)

China's child-related businesses saw a sudden jump in attention both on social media platforms and the stock market on Monday afternoon after the government announced a policy allowing every couple to have three children with supportive measures as part of the effort of coping with the aging of the country's population.

After the news, baby and pension-related concept stocks saw a conspicuous rise with baby clothing, maternal and child health companies all seeing a big jump.

In Hong Kong, the Hang Seng Index closed up 0.08 percent, with maternal and baby stocks surging. Goodbaby International rose more than 30 percent and Aidigong Maternal & Child Health was up by more than 20 percent.

Corresponding products such as triple bunk beds got a lot of attention with some seeing them as good solutions for a future three-child family.

A manager at a factory making the bunk beds told the Global Times on Monday that the company hopes the products will be more popular in the future.

"Currently, our products are mostly for triplets, but with the new policy in place there should be rising demand in the future," he said.

Other products like baby carriages with three seats could also see a bigger market thanks to the new policy.

Private vehicles with more seats are also expected to do well, with demand for seven-seat cars having already increased following the promotion of the two-child policy.

China's car market is dominated by middle-aged and elderly consumers, so the three-child policy could make car market demand more diversified, Cui Dongshu, secretary general of the China Passenger Car Association, told the Global Times on Monday.

However, he also noted that products such as seven-seater cars will still only have a niche market.

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