China announced on May 31 the implementation of a policy that allows a couple to have three children and supporting support measures. It’s a major shift in fertility restrictions after recent data showed China’s birth rate has fallen sharply. But ratings agency Moody’s Investors Service said today that China’s three-child policy is unlikely to significantly change the nation’s birth rate.
China’s new policy allowing couples to have up to three children could support fertility rates but is unlikely to significantly change the nation’s birth rate, ratings agency Moody’s Investors Service (Moody’s) said on Monday, according to a Reuters report today. Moody’s also said the policy highlights the risks of aging across emerging markets in Asia.
According to Moody’s in a statement, “While China’s new policy of allowing three children per couple could support fertility rates, it is unlikely to significantly change the nation’s birth rate, meaning that aging will remain a negative constraint on credit.”
Reuters said fertility concept stocks listed in Hong Kong and mainland China fell after Moody’s statement.
The report said the decision to allow a family to have up to three children has been met with skepticism in China, with people on social media expressing doubts about whether the decision will make much difference and calling for details of the “supporting measures” the government has promised.