Chinese dairy firms set for consolidation boost

Chinese infant formula producers will be the main beneficiaries as Beijing speeds up regulating the industry to boost confidence in local products, according to analysts.

A group of government departments led by the Ministry of Industry and Information Technology submitted the proposals recently to the State Council, with a view to releasing guidance on MA transactions in the dairy industry within two months, according to a research report from Citic Securities this week.

The guidance would reveal government’s determination to consolidate the industry and create several high-profile local brands, the report said.

“Consolidation in the industry will leave a larger market share and...