Shares of the company Goodbaby, which makes various children’s products, alone rose 31% in Hong Kong.
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The Chinese government decided to allow families in that country to have up to three children, all in order to prevent the aging of the population. This news caused Chinese companies that make maternity-related products, such as strollers, infant car seats and milk formula, to have a windfall in their shares.
Shares of these types of companies soared in mainland China and Hong Kong on Monday after the Chinese government announced this important change in its family planning policy. in order for the country to avoid a demographic crisis in the coming years.
For example, Shares of the Goodbaby company, which makes various children’s products, rose 31% in Hong Kong. Likewise, the shares of the company Suzhou Basecare Medical, which offers genetic tests for couples seeking to undergo the in vitro fertilization process, increased by 15%.
On the other hand, Jinxin Fertility Group, which provides assisted reproduction services, gained almost 18% in its shares, while Aidigong Maternal & Child Health, which offers maternal health services, increased by 22%.
Beingmate, a major manufacturer of infant formula, was up 8%. And Goldlok Holdings, which makes electric trains and dolls, jumped 10%. Children’s clothing maker Lancy was up 7%, reported on CNN.
The top leaders of the Chinese Communist Party made the decision to let the couples have up to three children on Monday, though They have not yet announced when this measure will be implemented legally.
The decision was made three weeks after the country’s 2020 census was released, which showed China’s population is growing at its slowest reported rate in decades.
This is a big problem for China, whose economy depends on a young workforce that can support an aging population while growing the country’s economy.
China maintained a policy of only one child per couple for more than 35 years, as the country tried to counteract overpopulation and reduce poverty levels.
It was until 2015 that the government announced that it would relax this measure and allow couples to have up to two children.
Now, in 2021, that number has risen to three.
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