Citi released a research report stating that it is starting a 30-day positive catalytic observation on China Feihe (06186.HK). The bank mentioned that given the recent shift in macroeconomic policies to assist in stimulating the economy, policies may release birth stimulation incentives through monthly subsidies.

The bank also believes that the Chinese government may introduce new policies to promote milk demand through consumer vouchers, which will help stabilize raw milk prices and reduce biological asset losses. The bank considers the group's dividends still attractive, reiterating a 'buy' rating and raising the target price from 5.2 yuan to 6.3 yuan.