China has been benefited from demographic dividend for many years. However, the population of new-born babies decreased by 630,000 in 2017, even after the two-child policy being implemented for a year. Meanwhile, the proportion of the aging population keeps growing. It is estimated that more than a quarter of the population will be over 60-year-old in 2030. The shrinking workforce may drive China into a "middle-income trap" that the country gets old before becoming rich, which may drag down the growth of China's economy.
Local governments in megacities such as Beijing, Shanghai, and Tianjin，which are also suffering population loss and aging started to attract young talents by easing the requirements to get 'Hukou' (household registration which allows the residents to buy homes and get access to medical care and local education for their children). Last week over 300,000 people applied for Tianjin Hukou within just one day after the local government announced its new favorable residence policy to attract talent.
At the same time, China's central government is planning to remove limits on the number of children a family can have by 2019 in order to fight against population aging. Stocks in the baby-related industries such as child care, toys, and baby's food have turned bullish from this coming baby boom.