Huaxi Securities: Future pro-natal policies are expected to continue to be implemented, benefiting first from the lower-tier markets.

Huaxi Securities pointed out that in the future, friendly fertility policies are expected to continue to be introduced. In the short term, childcare subsidies directly reduce the cost of raising children for families, boost fertility desires, and benefit the lower-tier markets more, favoring infant and maternity consumer products, as well as confinement centers. In the long term, complementary policies for childcare and education are needed, benefiting early childhood education and adolescent training institutions.