CITIC Securities: Evaluate the effectiveness of childcare subsidies and may introduce a variety of comprehensive policies in the future.

China International Capital Corporation interprets the parenting allowance policy, stating that recently, the General Office of the Communist Party of China and the General Office of the State Council issued the "Implementation Plan for the Parenting Allowance System." The parenting allowance system is a system in which the state provides subsidies to families raising infants and young children to support them and alleviate the pressure of raising children. On one hand, the parenting allowance overall helps to increase the birth rate or prevent further decrease in the birth rate; on the other hand, improving the willingness to have children is a long-term process, and it is difficult to completely solve the parenting issue solely with economic subsidies. Depending on the effect of the implementation of the subsidies, various comprehensive policies are expected to be introduced in the future. After the announcement of the news, related sectors such as the dairy industry, mother and baby products, and toys rose slightly before falling back, showing that the market has a cautious expectation towards the effectiveness of the policy implementation.