Danone, MJN, Nestle & P&G stock all rise on news that China will allow 2 children per couple
It's been 35 years since the rule came in to curb China's exploding population. Now the warnings are that nearly a quarter of the population will be over 60 by 2030. It's estimated that China currently has a population of over 1.4bn
The problem for China is whether the majority of people can afford to have more children, so we shouldn't expect all the bedroom lights to start switching off early.
The companies that have seen their stock rise are all in the nutrition business which is why this is potentially good news for them
This news might also spread to the New Zealand dairy industry looking to get back on track after Fonterra milk scandal. Then we may have more of these huge housing developments being put up, helping the resource sector.
There's many forward looking scenarios but you can see by the reaction in just a few stocks how big China plays out in markets
If I had to pick one firm that now needs to up their game in China it would be Ikea ;-)
As Confucius once said, " It takes many nails to build a crib, but only one screw to fill it"
What would your China baby boom trade be?
Coming soon, the sound of 500million screaming babies
