China: Free Float Market Capitalization of Listed Companies / M2

Macro

2026-06-06

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 first quarter of 2026, the ratio of the tradable market capitalization of domestic listed companies in China to M2 retreated to 0.2763 from the previous value of 0.3007. Against the backdrop of the People's Bank of China continuously releasing liquidity and M2 YoY growth strongly reaching 9.0%, the decline in the ratio indicates that the expansion speed of stock market capitalization has temporarily lagged behind money supply growth, with funds being prioritized toward the real economy.

AI Data Insight

In the first quarter of 2026, the ratio of the tradable market capitalization of domestic listed companies in China to M2 retreated to 0.2763 from the previous value of 0.3007. Against the backdrop of the People's Bank of China continuously releasing liquidity and M2 YoY growth strongly reaching 9.0%, the decline in the ratio indicates that the expansion speed of stock market capitalization has temporarily lagged behind money supply growth, with funds being prioritized toward the real economy.

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