Chinese family planning authorities estimate the two-child policy will add an estimated 3 million babies annually in the next five years, pushing the total figure each year to up to 21 million.

Those figures will have a significant on China's economy.

Calculated on a basis of an annual spending of 16,000 yuan for each newborn, a yearly increase of up to 50 billion yuan, or more than 7 billion US dollars, is expected in consumption for infants in China.

The business concerning medical care and mother and baby products will directly benefit.

Among the 28 companies listed in China which focus on baby-related business, 21 have already released their semi-annual reports for the first half of this year.

Seven of them reported an over 100 percent increase in net profit, and three companies saw a 300 percent growth in revenues.

Huang Jun is an analyst at China Merchants Securities.

"Some reports covering the first half of the year have presented better-than-expected performance thanks to the second-child policy. The year of 2016 will see an explosive growth in newborns. "

The One Child Policy was eliminated mainly to create a demographic balance giving a rapidly aging Chinese society.

Chinese researchers project more than a quarter of the Chinese population will be over the age of 65 by 2050.

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