On the 29th of October 2024, the General Office of the State Council released a document titled "Several Measures for Accelerating the Enhancement of Fertility Support Policies to Facilitate the Establishment of a Fertility-Friendly Society." This policy announcement had a notable effect on concept stocks associated with multiple births in the Hong Kong stock market, resulting in a majority of these stocks opening at higher values.

Content of the Fertility Policy

The "Several Measures" outlined by the General Office of the State Council encompass 13 specific initiatives aimed at fostering fertility. These measures concentrate on bolstering fertility services, improving childcare infrastructure, fortifying support mechanisms in education, housing, and employment, as well as cultivating a conducive environment for fertility within society. The primary objectives of these measures include cost reduction in childbirth, child-rearing, and education, advancement of high-quality population growth, and provision of robust backing for attaining a moderate fertility rate. Noteworthy policy details comprise:

1. Strengthening fertility service provision: Augmenting the scope of fertility insurance coverage, enhancing maternity leave structures, instituting fertility subsidies, and upgrading reproductive health services.
2. Enhancing the development of childcare services: Elevating the standards of pediatric medical care, expanding the availability of universal childcare services, refining policies supporting universal childcare, and fostering child welfare and protection.
3. Reinforcing support mechanisms in education, housing, employment, etc.: Broadening the accessibility of superior educational resources, fortifying housing assistance policies, and safeguarding labor rights.
4. Cultivating a fertility-friendly societal ambiance: Proactively fostering a contemporary ethos regarding marriage and childbearing, and amplifying social awareness and advocacy efforts.

Impact of the Policy on the Hong Kong Stock Market

As a consequence of this policy shift, a substantial portion of concept stocks affiliated with multiple births in the Hong Kong stock market exhibited positive opening trends. Notable instances include Jinxin Reproduction (01951) with a 14.77% increase to HK$4.43, Aide Palace (00286) with an 11.98% rise to HK$2.71, China Feihe (06186) with a 6.8% uptick to HK$6.6, and Goodbaby International (01086) with a 7.87% increase to HK$0.96. These entities operate across diverse sectors related to reproduction, encompassing assisted reproduction, maternal and childcare, and infant formula, thereby directly benefiting from augmented governmental support for fertility-oriented policies

Jinxin Reproduction, a provider of assisted reproductive services, observed a substantial surge in market value subsequent to the policy announcement. With the incorporation of assisted reproductive technology projects into medical insurance reimbursements, the company anticipates heightened patient influx, thereby bolstering its market standing and financial performance. Aide Palace, renowned for its premium postpartum services encompassing maternal and childcare as well as physical well-being, stands as a direct beneficiary of the drive towards a fertility-friendly society. Likewise, China Feihe, a leading player in the infant formula industry, is poised to expand its market share and brand influence owing to the favorable policy climate.

Conclusion

The fertility policy measures unveiled by the General Office of the State Council are prognosticated to effectively curtail childbirth expenses, stimulate superior population growth, and engender fresh growth prospects for relevant enterprises. Stakeholders are advised to diligently track the subsequent policy implementations and market responses to capitalize on investment opportunities.

How to Invest Using uSMART

After logging into the uSMART HK app, click on the "Search" option located at the top right of the page. Enter the stock code, such as " 01086 " to access the details page where you can review transaction details and historical trends. Then, click on the "Trade" option at the bottom right corner, select the "Buy/Sell" function, and finally fill in your transaction conditions before submitting your order.