Nappies up, condoms down… end to China’s one-child policy hits shares

[Jonathan Fairfield]

Nappies up, condoms down… end to China’s one-child policy hits shares

No sooner has China reportedly put an end to its one-child policy, than a detailed report setting out the estimated economic impact has come to light.

Credit Suisse estimates the relaxed controls will result in between three and six million extra babies being born each year.

The annual cost of raising them is estimated at being equivalent to between four and six percent of China’s total retail sales.

More mouths to feed: that means less for families to spend on consumer goods.

“They may buy less iPhone and Samsung, they may buy a Xiaomi phone, the cheaper local version, one third the price and switch the budget maybe to that baby food product, maybe entertainment,” said Savio S. Chan, President and CEO of US China Partners.

The news about the country’s apparent change of direction sent shares in China Child Care Corp., makers of hair and skin products for children, soaring by 40 percent on the Hong Kong stock exchange.

However shares in Okamoto, a Japanese maker of condoms, much used by Chinese visitors to Japan – until now – slumped 10 percent.

-- (c) Copyright Euronews 2015-10-31

[waldroj]

Okamoto should see this as an opportunity to retool and make raincoats for children instead!

Just shows how fickle the stock market can be!

[Dustdevil]

Here is where the Chinese government especially disgusts me...they force women to have abortions even at eight months, and sometimes also sterilize them. When the husband complains, they have goons beat them up. This, besides, in a country with seriously no freedom of speech. What a horrible government.

[elgordo38]

Okamoto should see this as an opportunity to retool and make raincoats for children instead!

Just shows how fickle the stock market can be!

Yes the market mode has done an about face. Bad news is now good news and good news well it just stays where it is. The word negative has entirely disappeared from the market along with earnings and common sense.

[JHolmesJr]

Im not sure the world is ready for another billion of them.

[Pimay1]

The future of Thai tourism just got a boost.

[GOLDBUGGY]

The future of Thai tourism just got a boost.

Yep!

The Rice Export Industry as well.

But they might lose out on the Rubber Industry on the reduction of Condoms. Unless they turn in the Motor Bike for a small car which has 4 bigger Tyers and not just 2 small ones.