Wednesday 7 December 2016

China's new baby policy lifts childcare stocks, sinks condom maker

Published 30/10/2015 | 10:01

China has decided to scrap its decades-old one-child policy (AP)
China has decided to scrap its decades-old one-child policy (AP)

Shares of companies making nappies, buggies and infant formula have seen a boost from China's decision to scrap its decades-old one-child policy.

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Investors are betting on a bump in sales for companies with baby or child-related businesses after China's Communist leaders announced that all married couples would be allowed to have two children.

One of the biggest winners was China Child Care, which makes hair and skin care products for children.

Its shares ended 40% higher on the Hong Kong stock exchange, although its small market value likely made trading more volatile.

Hong Kong and mainland Chinese-listed formula makers also rose strongly, as did nappy makers in Japan.

But Japanese condom maker Okamoto, a favourite of Chinese visitors to Japan, slumped 10%.

Press Association

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