What is the value of China’s Second child liberalization policies for investors?

Both optimism and caution are the themes surrounding China’s new policy. In an interview with Lu (Sandra) Kang for Tencent Financial News I suggest that the “two-child policy will bring to market an entire generation of consumers, helping to stimulate domestic demand and accelerate the growth of China’s middle class.” Bloomberg News  reported the Credit Suisse outlook for growth impacting the “lonely generation” days before the announcement. However, while the shift from one-child policy toward two-child policy is worthy of recognition -i t does take time, and should be regarded in the context of five-year plan. For a complete analysis on the promise and the need for caution regarding the new policy you can read the full article in the original Mandarin text.

Photo: flickr StephYo