Shares of Jinxin Fertility (JXR) experienced a sharp decline in the intraday trading session, plummeting 5.06% despite China's recent announcement of measures to boost birthrates. This unexpected movement comes as a surprise to many investors who anticipated a positive reaction to the government's new policy.

The Chinese government recently unveiled an annual childcare subsidy of 3,600 yuan (approximately $500) for children up to three years old, aiming to encourage higher birth rates. However, market analysts suggest that the subsidy's relatively small amount may not be sufficient to significantly impact birth rates or benefit fertility-related businesses substantially.

Ting Lu, chief China economist at Nomura, commented on the policy, stating, "As the subsidy is relatively small, we don't think the birth rate will significantly increase in coming years." This sentiment appears to be reflected in the market's reaction, with investors seemingly skeptical about the policy's effectiveness in boosting fertility-related stocks.

The decline in Jinxin Fertility's stock price aligns with a broader downturn in the Hong Kong market, with the Hang Seng Index dropping 0.95% and the Hang Seng Tech Index losing 1.76%. This general market weakness, coupled with profit-taking after recent rallies, may have contributed to the selling pressure on JXR shares.