China's child policy boosts shares in kids business

Shares in Chinese toymakers and diaper producers are soaring.

That after Beijing said it would now allow married couples to have up to three children.

Shares in toy maker Goldlok Holdings jumped to their 10% daily limit for the second day on Tuesday (June 1).

Other baby-related stocks, including milk powder maker Beingmate, and toddler care equipment maker Ningbo David Medical Device also soared.

This despite a widely shared perception that the policy shift won't have a sudden impact on the country's declining birth rate.

On the streets of Beijing working mothers were worried about money and mental health.

"The cost of time (to raise a child) is also high. So if there's a third child, you will spend more time raising your children. Meanwhile, you need to work. So I think it (having a third child) isn't at all realistic. In terms of (implementing) the three-child policy, I think only super-rich families might have the aspiration (to have a third child), because they have more money to raise children, like to hire other people to take care of them."

"If you have a child, especially moms, well for fathers it's relatively alright, but mothers lose their own lives. The child is your priority. (Moms) can't have their own life. Before having a child, (I) could go shopping and buy something for myself. Now, it's all about my child. Food-wise, you must consider what your child eats. It can drag down your sense of happiness and freedom. But, in another way, having a child also brings you happiness. That's another matter. People who haven't given birth to a child, they cannot experience the happiness of having a child."

One expert said the sharp gains in such stocks were the result of "short-term speculation," as he sees limited immediate impact on corporate fundamentals.

China lifted the cap on births in a bid to stave off risks to its economy from a rapidly aging population.

But analysts say the policy by itself is unlikely to boost many couples' willingness to have more children, given high childcare costs.

Meanwhile, Chinese listed companies fielded questions from investors anxious to learn if their businesses would benefit.

Even one firm making rice harvesters was asked if it might gain.

More babies might mean more demand for rice, it admitted.

If, that is, people really are willing to have a third child.

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