China's Birth Incentives Look Positive for a2 Milk -- Market Talk

Dow Jones

2025/07/04

0544 GMT - China's continued commitment to increasing its birth rate looks positive to a2 Milk's bull at Citi. Analyst Sam Teeger draws clients' attention to media reports that China's government will offer about US$500 a year for each child born from the start of 2026, until the child is three years old. This follows earlier birth stimulus, an easing of rules on marriage registration and incentives for multiple children, he writes in a note. More births would mean more potential infant-formula sales for the dairy products manufacturer. Citi has a buy rating and A$8.20 target price on a2 Milk's Australia-listed stock, which is up 0.7% at A$8.085. (stuart.condie@wsj.com)

(END) Dow Jones Newswires

July 04, 2025 01:44 ET (05:44 GMT)

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