China’s new baby policy lifts kid stocks, sinks condom maker
Parents and their child play with remote-controlled toy cars at a shopping mall in Beijing, Friday, Oct. 30, 2015. China’s decision to abolish its one-child policy is a boon to couples and to sellers of goods from formula to diapers to toys. And it might help defuse economic stresses caused by an aging population. (AP Photo/Andy Wong)
Shares of companies making diapers, baby strollers and infant formula were getting a boost Friday from China’s decision to scrap its decades-old one-child policy.
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.
READ: China ends one-child policy, says state media
One of the biggest winners was China Child Care Corp., which makes hair and skin care products for kids. Its shares ended 40 percent 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 diaper makers in Japan.
READ: China’s easing of birth limit a boon to couples, companies
However, Japanese condom maker Okamoto, a favorite of Chinese visitors to Japan, slumped 10 percent.
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