(Yicai) March 14 -- Hohhot, the capital of China's northwestern Inner Mongolia Autonomous Region, has joined other Chinese cities attempting to reverse the aging population by introducing a cash subsidy of up to CNY100,000 (USD13,815) for parents having a third child.

Families will receive CNY10,000 (USD1,380) a year for a third child if born after March 1 and until it reaches 10 years old, according to the details of a childcare financial assistance program released on the website of the Hohhot's health commission yesterday.

In addition, parents welcoming their first newborn will receive a one-time subsidy of CNY10,000 (USD1,380), while those welcoming their second will get CNY10,000 a year until it turns five.

Following Hohhot's announcement, the shares of Chinese maternal and child products maker Aiyingshi [SHA: 603214], infant formula giant Beingmate [SHE: 002570], and New Hope Dairy [SHE: 002946] surged by their daily trading limit of 10 percent to close at CNY21.29, CNY4.62, and CNY15.30 (USD2.94, 64 US cents, and USD2.11) apiece, respectively, in Shanghai and Shenzhen today.

While local subsidies are not national policies, they are a positive signal, independent dairy sector analyst Song Liang told Yicai. However, their long-term impact on boosting the birth rate remains to be seen, with social factors that constrain fertility persisting, Song added.

This year's Government Work Report highlighted policies to promote childbirth, the issuance of related subsidies, the vigorous development of integrated preschool services, and the increase of inclusive childcare service availability.

The Chinese government should continue implementing education and healthcare policies to work in synergy with fertility subsidies, Song pointed out.

Previously, 23 Chinese provincial-level regions and cities had piloted and explored a childbirth subsidy system, but of a smaller size than Hohhot. For example, Yunnan province offers a one-time subsidy of CNY2,000 (USD275) for a second child and CNY5,000 for a third child.

The ongoing decline in China's birth rate is a significant challenge for the dairy and maternal-infant industries. According to several research reports, childcare subsidies are one of the key measures to address the issue and can help boost the willingness of people to have children.

Editor: Martin Kadiev