The Analysis About Information Spillover Effect Of Chinese Aged Industry Based On Connectedness Network

Based on the fifth census,the proportion over the age of 65 in China is 7.0% by the year 2000,and the whole country has become an aging society in the same time.The proportion has increased to 13.5% by 2021 according to the data of the seventh census.By 2050,the proportion is expected to reach 27.9%.The aging procedure in China has been accelerating recently,and the demand of the elderly is increasing.This evokes some new economic areas targeting the aged people,such as the finance,the real estate,and the medical care.As shown in Chinese A-share market,a lot of leading enterprises have entered those areas due to the significant development potential.The new market for the elderly is booming,and the interaction between it and the traditional ones are intense in modern China.The transaction among the involved companies becomes more and more closer,and the information transmission among them also plays an important role,which leads to the risk spillover in the financial market.All those phenomena make the study about the risks among companies in the new elderly market,as while as the risks between the new market and the traditional ones are very necessary.In order to clarify the risk spillover effect of the market for the elderly,we establish a two-layer information spillover network.The data we focus on is the stock price of25 chosen companies in the A-share market from 2014 to 2021.The generalized variance decomposition method is used to analyze the static and dynamic risk spillover effects.Our aims are as follows.In the first place,we try to figure out the mechanism of risk spillover and the key company in the network.In the second place,we try to study the externality of the market for the elderly.The study shows that the market for the elderly in China has a significant risk spillover effect.The risk spillover is time-varying,and has very different results among the different departments.In addition,the transmitted spillover effect is greater than the accepted spillover effect.The economic situation is an important external factor.During the "stock disaster" in 2015 and the Sino US trade war in 2018,the total spillover effect of Chinese market for the elderly increased rapidly.In contrast,the corona-virus pandemic had a smaller impact and the impact time is short.