A few years ago China announced that it would begin to scale back its decade old one-child policy.
A higher birth rate would certainly help China’s demographic crisis, which includes a shortage of workers and a skew toward male children.
Business Insider reports that a retraction of the one-child policy doesn’t just open the floodgates for Chinese babies.
Morgan Stanley analysts led by Angela Moh recently survey 1,453 Chinese consumers to gauge their willingness to have another child should the reform take hold.
Only 24% said they would be willing to have another child.
“In our base case scenario, we expect 8-11% incremental newborns per year in 2015-2020 from the policy relaxation allowing Chinese parents to have a second child if either of them is the only child,” wrote Moh. This translates to 1.3mn to 1.7mn additional newborns.
“Incremental population and wealth effect could boost overall consumption in the longer run.”
SUBSCRIBE & DON'T MISS A SINGLE EPISODE OF MICHAEL YARDNEY'S PODCAST
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
NEED HELP LISTENING TO MICHAEL YARDNEY'S PODCAST FROM YOUR PHONE OR TABLET?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
PREFER TO SUBSCRIBE VIA EMAIL?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.