Guotai Haitong: The scale of childcare subsidies may reach an average of one trillion yuan per year, boosting demand for dairy products and other industries.

Guotai Haitong Securities released a research report stating that on July 28th, the implementation plan for the national parenting subsidy system was announced, "Guobu" officially entered the field of childbirth. The research team estimated that the annual average issuance of parenting subsidies is about one trillion, which is expected to have a multiplier effect and the possibility of further increase, boosting demand in the dairy products industry. Considering the trend of the development of the population of childbearing age, Guotai Haitong predicts that the number of births in the future will decrease, and the annual subsidy amount will also decrease accordingly, but it is still a significant financial expenditure. For the dairy products industry, national-level parenting subsidies are expected to drive related dairy product consumption, especially infant formula, helping to boost the sector's business climate and accelerate the convergence of supply and demand gaps.