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

  • Shares of Danone, Nestle and Mead Johnson gain after news
  • Baby food in China represents about 7% of Danone's earnings
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Will Ending the One-Child Policy Benefit China's Economy?

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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 shares advanced as much as 3 percent to 65.16 euros, while Nestle added as much as 0.7 percent to 76.25 Swiss francs in Zurich. Mead Johnson Nutrition Co. rose as high as $83.75 in New York trading, a 5 percent gain.