Judging for the heated discussion over the recently announced two-child policy, it does seem to suggest that the two-child policy might be able to boost the Chinese economy.

Anbound's research team, is however, of the view that one should not be too optimistic on the two-child policy, and should not assume that the new policy will be a new boost to Chinese economy.

There are several reasons. Firstly, the younger generations are less inclined to have children and hence it is uncertain whether the two-child policy will have the desired immediate impacts. Secondly, although having children is a natural need, given that there is no significant increase in the salary, the high housing price, the need for such consumption will have the cancellation effect on the desire to have children. Thirdly, the economic growth depends on the creation of wealth, there is still a very long way to go between creation of wealth and child birth.