China may relax its one-child policy at the end of 2013 or early 2014 by allowing families to have two children if at least one parent is from a one-child...

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China may relax its one-child policy at the end of 2013 or early 2014 by allowing families to have two children if at least one parent is from a one-child family. If that happens, all the recent mind-numbing analysis about China's sputtering economy becomes moot, writes Louis Basenese, chief investment strategist at Wall Street Daily. This single policy change by the Chinese government stands to be its best economic stimulus plan yet. The extra 9.5 million mouths to feed each year will unlock a new wave of demand for commodities and consumer goods. Two companies set to profit are French dairy company Danone (DANOY.PK) and videogame-producer Activision Blizzard (ATVI). Danone has been buoyed by double-digit sales growth of baby-nutrition products and represents a safe way to play the future demand for baby formula. Activision, on the other hand, is posed as its gaming products hit Chinese streets hard. (VIEW LINK)

economy China

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