China: Free Float Market Capitalization of Listed Companies / M2

Macro

2026-10-31

Description

The Free Float Market Capitalization/M2 of listed companies in China is mainly used to measure the extent of market capital investment in the stock market. When this indicator is too high, it represents a large influx of funds into the stock market, which may lead to a rapid rise in stock prices and the risk of diverging from fundamentals. Conversely, a lower indicator may indicate a relatively smaller stock market or a lack of liquidity in the market.

Published by
Choice Eastmoney
Frequency
Monthly
Next Update

AI Data Insight

In the third quarter of 2026 (September), the ratio of the tradable market capitalization of China's domestic listed companies to M2 dropped to 0.268, a significant pullback from 0.2826 in the previous month. Although broad money (M2) maintained a year-on-year growth of 7.2%, funds mostly flowed into time deposits rather than the stock market, leading to a divergence between liquidity and stock market performance. In the short term, close attention should be paid to whether official policies can guide the revitalization of capital.

AI Data Insight

In the third quarter of 2026 (September), the ratio of the tradable market capitalization of China's domestic listed companies to M2 dropped to 0.268, a significant pullback from 0.2826 in the previous month. Although broad money (M2) maintained a year-on-year growth of 7.2%, funds mostly flowed into time deposits rather than the stock market, leading to a divergence between liquidity and stock market performance. In the short term, close attention should be paid to whether official policies can guide the revitalization of capital.

Description

The Free Float Market Capitalization/M2 of listed companies in China is mainly used to measure the extent of market capital investment in the stock market. When this indicator is too high, it represents a large influx of funds into the stock market, which may lead to a rapid rise in stock prices and the risk of diverging from fundamentals. Conversely, a lower indicator may indicate a relatively smaller stock market or a lack of liquidity in the market.

Published by
Choice Eastmoney
Frequency
Monthly
Next Update