China’s Aged Population is Rising

China’s total population is 1.3 billion as of July last year. The one-child policy has reduced the population growth but China’s population is ageing rapidly.  By 2020, the proportion of people aged 65+  is projected to rise to 13.1% of population. In 1978 it was just 4.5% and last year it stood at 9.4%.  By 2020, the aged population will account for almost 1/4th of the global aged population.

China’s Population Shift from 1978 to 2008 in Millions

People aged 65+ is growing in Asia. Japan has the most most aged people in the world with 22.7%  of the total population in 2009.

Aged Population in the Asia-Pacific

Source: Euromonitor

What is the effect of ageing population in China?

Older people tend to get sick often. Hence there is an increase in consumer spending on health care expenditures which includes both state health care expenditures and private spending. For example in China, health care expenditures grew from $45.9 B in 2003 to $123.0B  in 2008.

Western companies that sell health-care equipments and technology to China offer good investment opportunities.

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