China’s Infant-Care Stocks Extend Gains on Three-Child Policy


Chinese baby-related stocks extended gains for a second day after the nation’s surprise decision to allow all couples to have a third child.

Dairy firm Beingmate Co. jumped 10% in Shenzhen, while Fertility clinic service provider Jinfa Labi Maternity & Baby Articles Co. rose by a similar magnitude. Hubei Goto Biopharm Co., a manufacturer of steroid hormone active pharmaceutical ingredient, surged 6% and infant goods retailer Shanghai Aiyingshi Co. climbed 10%.

China’s new birth policy will boost companies ranging from infant product manufacturers to maternal service providers, analysts say. Citi expects the new rule will benefit lower-tier cities due to low child-raising costs.

China’s Infant-Care Stocks Extend Gains on Three-Child Policy


  • China’s further relaxation of its birth policy is well expected, and the new rule may give a bigger boost to birth rates in lower-tier cities given the lower costs of raising children, analysts including Tiffany Feng write in note
  • New rule is however difficult to turn around birth downtrend, due to falling population base of females at childbearing age
  • Citi prefers Feihe and Ausnutria, as the two are likely to benefit most give their higher exposure to lower cities


  • The themes to find stocks that will benefit from the three-child policy include mother- and baby-care product manufacturers, maternity and parenting services providers, analysts including Fan Junhao write in note
  • Consumption upgrade, digitalization and rising impact of domestic brands are the latest trends in China’s infant-related industries
  • CICC prefers leading manufacturers of various infant-related products, including Winner Medical, C&S Paper, Hangzhou Haoyue Personal Care, Shanghai M&G Stationery, Pop Mart
  • It also likes retailer Shanghai Aiyingshi and maternal service provider Aidigong Maternal & Child Health


  • The new rule is positive, but it’s too early to conclude its effectiveness, analysts including Kerith Chen write in note
  • Infant formula brands including Yili and Mengniu, diaper brands like Hengan should benefit first
  • In a separate note, Jefferies analyst Mitsuko Miyasako expects the policy to benefit Japanese personal-care firm Pigeon due to its high China composition and high baby products composition

©2021 Bloomberg L.P.

BQ Install

Bloomberg Quint

Add BloombergQuint App to Home screen.