CITIC Securities: Future childbirth subsidies can be improved in three dimensions.

The research report of CITIC Securities Investment states that China's top-level design of fertility support policies began at the Political Bureau meeting in May 2021, and since then, various regions have followed up with detailed policies. The policy requires that by 2025, the basic framework of proactive fertility support policy system will be established, and future fertility-related policies will constitute an important part of China's domestic demand policy. From the existing practical experience, the effect of local fertility subsidy policies is limited, with the main problems lying in three points: the subsidy for one-child is too low; the strength of local subsidies is insufficient, due to the lack of proper solutions for local government incentives under the existing financial system; the contradiction between local subsidies and population mobility has not been effectively resolved. In the future, improvements can be made in three dimensions in fertility subsidies: shifting the focus of subsidies from three children to one child, improving the experience of initial fertility and the willingness to have further children; increasing the intensity of fertility subsidies; centralizing fertility subsidies and exploring a model of fertility subsidies that is compatible with local incentives.