Baby-Formula Stocks Jump After China Vows to End One-Child Rule

Danone rose as much as 3 percent in Paris and Nestle SA also gained after China said it will lift its one-child policy, boosting the outlook for sales of infant nutrition. Danone, Nestle and Mead Johnson are among the biggest players in China’s $19 billion baby-formula market, which represents about a third of the industry globally.

There’s been a worldwide boom in the flow of baby food to China, with quantities ranging from single cans sold via Inc. to 25 metric-ton orders through suppliers on Since a 2008 infant-formula scandal that hospitalized 50,000 babies, the Chinese have sought out foreign-made brands.

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