Shares in childcare companies soar after China scraps one-child policy

[HONG KONG] Shares of baby stroller maker Goodbaby International Holdings Ltd and diaper maker Hengan International jumped on Friday after China scrapped its one-child policy.

China's ruling Communist Party said on Thursday it would ease family planning restrictions to allow two children for all couples.

Companies that cater to the childcare industry welcomed the news, with Goodbaby climbing 8.9 per cent, Hengan rising 3.3 per cent and skin care products maker China Child Care, formerly Prince Frog, gaining 17.3 per cent.

Shares of infant formula maker Biostime International rose 11.8 per cent, milk powder maker Yashili International surged 9.6 per cent, and dairy products maker China Mengniu Dairy also climbed 6.7 per cent.

REUTERS