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Companies benefit from new easing of one-child policy in mainland China

TAIPEI, Taiwan -- A number of Taiwanese apparel and textile companies are poised to benefit from an amendment recently approved by China to lessen its stringent one-child policy.

According to reports, the National People's Congress in China yesterday approved a policy change allowing certain families to have more than one child. The latest changes state that if either parent is an only child without siblings, their household may have one additional child, raising the limit to two.

Market commentators stated that a number of Taiwanese companies, including infant apparel-maker Les Enphants (麗嬰房) and PiyoPiyo (F-東凌), in addition to TopBi (F-淘帝), which will be listed on the TWSE on Dec. 30, would benefit from the move. Textile companies KNH (康那香) and Nan Liu (南六) are also expected to profit from China's policy change, said market commentators.

An additional 8 million children are expected to be born in the next five years following the change, said a JihSun Securities fund manager. The new births are expected to stimulate consumer spending and contribute to mitigating a number of issues derived from China's aging population. Overall demand for transportation and housing are also expected to rise markedly, said the fund manager.

As a testament to the market fervor surrounding the impending easing of the population-control policy in China, PiyoPiyo is expected to debut on the exchange at NT$118 per share on Dec. 30.

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