Following the announcement by the Chinese authorities to scrap the about 16.5 million-child policy, shares in companies that make products such as nappies, baby milk, kids toys and prams shot up, however, the shares of makers of condoms, for example, slumped. China Child Care were the biggest winners with shares ended 40% higher, and even the local dollar in New Zealand gained nearly 1% since the country is a major dairy exporter and its milk powder and formula industries would expect to benefit. Analysts suggest this new policy may result in Chinese consumers shifting from luxury to kid-friendly products.
Following the announcement by the Chinese authorities to scrap the one-child policy, shares in companies that make products such as nappies, baby milk, kids toys and prams shot up, however, the shares of makers of condoms, for example, slumped. China Child Care were the biggest winners with shares ended 40% higher, and even the local dollar in New Zealand gained nearly 1% since the country is a major dairy exporter and its milk powder and formula industries would expect to benefit. Analysts suggest this new policy may result in Chinese consumers shifting from luxury to kid-friendly products.