China will allow couples who want a third child, according to a meeting of the Political Bureau of Communist Party of China Central Committee held on Monday.

The policy and relevant supporting measures will help improve the population structure of China, tackle the population problem, and preserve the country's human resource advantages, the meeting said.

Following the news, shares of mother and baby businesses listed in the HKEX rose sharply, with AND Maternal & Child Health up 20 percent and durable juvenile products company Goodbaby International Holdings up 35 percent.