The Impact of 'Three-Child' Policy on the Stock Performance of Chinese Maternal and Infant Industry

The "three-child policy" is a unique population policy in China. Previous studies have shown that demographic policies are related to the performance of related stocks and affect economic development. I studied the impact of the introduction of the "three- child policy" on the stock performance of mother-infant-related industries. Through research, it is found that the implementation of the "three-child policy" has had a negative impact on mother-infant-related industries. I speculate that because the "two- child" policy did not have the expected impact on stocks in the mother and baby market and China's economic development trend is not as good as before. Concerns about the cost of childbearing have grown. When the three-child policy was proposed, the market reaction was not as people expected. Therefore, when the three-child policy was officially implemented after two months of discussions, people were already disappointed with the performance of stocks related to the mother and baby industry which lead to the negative impact. This study adopts the event research method of CAR and the Fama-French three-factor model. The research results show that stocks related to the maternal and child industry show a small abnormal performance when the policy is announced, and a large abnormal performance when the policy is officially implemented. This reflects the attitude of the maternity and child-related industries towards changes in population policy, especially in the context of the epidemic, which is conducive to the formulation of population policy