After the country unexpectedly decided to allow all couples to have a third child,
Chinese baby-related stocks rose for the second day in a row.
Dairy products company Beinmei Company rose 10% in Shenzhen,
while fertility clinic service provider Blonde Rabbi Maternal and Child Products Company rose by a similar amount.
Shares of Hubei Goto Biopharm Co.,
a manufacturer of steroid hormone active pharmaceutical ingredients,
soared 6%, and baby products retailer Shanghai Aiyingshi's shares rose 10%.
Analysts say that China’s newborn policy will promote companies ranging from baby product manufacturers to maternity service providers.
Citi expects that the new regulations will benefit lower-tier cities due to the lower cost of raising children.