Hong Kong stocks dairy product shares opened higher in the morning, as of the time of writing, $CH MODERN D (01117.HK)$up 5.08%;$CHINA FEIHE (06186.HK)$up 5.10%;$MENGNIU DAIRY (02319.HK)$up 3.54%.

On the news front, the General Office of the Central Committee and the General Office of the State Council issued the "Plan for Special Actions to Boost Consumer Spending." The plan proposes to strengthen support for childbirth and child-rearing. It also studies the establishment of a childcare subsidy system. Additionally, on March 13, the Health Commission of Hohhot released local childbirth subsidy details, with the highest single-child subsidy reaching 0.1 million yuan, while also providing milk consumption vouchers benefiting Inner Mongolia Yili Industrial Group and MENGNIU DAIRY.

CITIC SEC pointed out in its Research Reports that if the childbirth policy subsidies are implemented in the future, it is expected to improve the birth population and is Bullish for the demand in the infant formula industry. At the same time, the number of children aged 0 to 6 is also expected to gradually improve, which is Bullish for the demand for children’s cheese. Actively pay attention to the implementation of the childbirth policy this year, which could enhance market expectations and valuation levels for the fundamentals of infant formula and cheese companies in the future.

Editor/danial