Shares of Goodbaby, which makes children’s products, jumped 31% in Hong Kong. Suzhou Basecare Medical Co., which offers genetic testing for couples wishing to undergo IVF, rose 15%.
Jinxin Fertility Group, which provides assisted reproduction services, gained nearly 18%, while Aidigong Maternal & Child Health, which provides maternal health services, rose 22%.
Beingmate, a major infant formula maker, climbed 8% in Shenzhen. Goldlok Holdings, which makes electric trains and dolls, jumped 10%. Clothing maker Lancy grew 7%.
The Chinese Communist Party leadership made the decision to allow couples to have up to three children at a meeting on Monday, although state media reports did not say when the policy change would be put. implemented.
It comes just three weeks after Beijing released its 2020 census, which showed China’s population was growing at its slowest rate in decades. This puts major pressure on an economy that relies on a young workforce to support an aging population and maintain high levels of growth.
China’s one-child policy had been in place for more than 35 years as Beijing tried to tackle overpopulation and reduce poverty.
In 2015, the Chinese government announced it would ease restrictions to allow up to two children per family. But the reversal failed to boost the country’s birth rate, which fell nearly 15% year-on-year in 2020.
– Laura He, Ben Westcott and Eric Cheung contributed reporting.