The Influence Of Inter-generational Population Structure On The Stock Market Analysis

People as a participant of economic activities,His specific economic behavior will bring great impact to the financial markets.Children,working-age and the old peoples’economic behavior have all kinds of differences,such as:Production behavior,consumer behavior and saving behavior, investment behavior,etc.All countries’ middle class is the main power in buying and selling stocks, so the medium and long term trends of the stock market related to inter-generational population age structure, especially the developed countries.World war Ⅱ,most of the war country have inter-generational differences of population structure,the population of post-war baby boom generation is more, the population of generation X is less,commonly (generation X’s parents give a low fertility rate caused by death and disability of the second world war).In most countries,generation Y (the children of the baby boomers) with the same number of generation X, generation Y is more in the United States, developing countries, such as China and India,generation X is more, but the middle classes in developing countries accounted for a small number,Although the population of generation X is more,but the stock market is not standard so that developing countries did not appear a big bull market.This article is based on the basic factors affecting the stock market demographic factors, study the influence of inter-generational population structure on the stock market.From the macroscopic and microscopic aspects, on the macroscopic research based on the demographic dividend and savings to promote economic growth and thus affect the stock market;Microscopic research based on investors of different ages have different risk preference to the financial asset allocation then impact the stock market.An aging population is in the process of demographic transition since the age structure of population imbalance changes, the problem, is which each country must face, the change of population age structure to economic growth could have a greater impact than the population size changes.This article use theoretical analysis,empirical research and empirical analysis methods.In the aspect of theory mainly involve life cycle savings and assets choice theory, the demographic dividend theory, capital asset pricing model and inter-generational overlap model theory.In particular, an investor in different periods of his life have different labor income and risk.investment in financial assets configuration is also different, Obviously under the supply and demand, the population structure change have impact of investor demand for the shares,then will affect the price of the stock.In terms of empirical research,Mainly choose the United States as the research object, select the population data and stock market data,From the point of the United States inter-generational population structure characteristics,study the relationship between the age structure, the degree distribution,risk preference, income levels of the investors and the stock.In the United States, investors’financial assets depleted after the 74-year-old, social population average lifespan extends, now more than 70-year-old is aging population, the percentage of the 66-year-old retired stake and 60 years of age or older population holding stocks is large,retirement pension system is when a person after 70 years old, retirement fund will sort out the retirees’stock account, most developed countries as America,they all have health insurance, not medical expenses increase forced the old man decrease the holdings of stocks, but the scope of nursing and health care are not reimbursed and retirement income reduce forced the old underweight stocks and other financial assets, so the the pressure of the elderly population decrease the holdings of stocks becomes an important fact of the U.S. stock market’s fell.In the empirical analysis,select China’s population structure data and stock market data, establishing model and using regression analysis, confirm the relationship between the population structure and the stock market.In this paper, the empirical analysis results show that the proportion of the major savings proportion of the population and stock prices are related,the quantity of the flange population (the next generation to buy shares) and stock prices are related Higher proportion of older people have more negative effect on the stock market.Specific performance as the high main savings and flange population proportion of the stock market the demand is higher,produce positive role to the stock m.arket;The aging population sell the shares because of risk aversion,produce negative role on the stock market.Finally, the paper analyzes the problems of China’s stock market, the lower birth rate currently,the phenomenon of aging of population is growing,China’s demographic dividend is gradually disappear, and China’s stock market is volatile over the past 20 years, are now facing the external problems such as development time is short,equity high-speed expansion, market supervision system is not mature and internal problems,and the housing prices rising too fast, the polarization between the rich and the poor,the life pressure and so on, these problems’ effectively solve will promote a healthy and positive development of China’s stock market.