China: Total Market Capitalization of Listed Companies / Broad Money M2

Macro

2026-06-13

Description

The total market value of listed companies in China/M2 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.

Note: The total market capitalization is greater than the circulating market capitalization, because the total market capitalization includes all stocks, while the circulating market capitalization only calculates the freely tradable part, such as founder shares, government shares, etc. are not included in the circulating market capitalization.

Published by
Choice Eastmoney
Frequency
Monthly
Next Update

AI Data Insight

In Q2 2026, the ratio of the total market capitalization of China's domestic listed companies to M2 slightly rose to 0.3296, maintaining a healthy level. Against the backdrop of the PBOC continuing to maintain a moderately loose money supply (M2 grew by 8.6% YoY in May) and the spillover of funds from the real estate sector, capital is gradually moving towards the equity market, bringing dual long-term support to A-shares in terms of earnings and valuation.

AI Data Insight

In Q2 2026, the ratio of the total market capitalization of China's domestic listed companies to M2 slightly rose to 0.3296, maintaining a healthy level. Against the backdrop of the PBOC continuing to maintain a moderately loose money supply (M2 grew by 8.6% YoY in May) and the spillover of funds from the real estate sector, capital is gradually moving towards the equity market, bringing dual long-term support to A-shares in terms of earnings and valuation.

Description

The total market value of listed companies in China/M2 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.

Note: The total market capitalization is greater than the circulating market capitalization, because the total market capitalization includes all stocks, while the circulating market capitalization only calculates the freely tradable part, such as founder shares, government shares, etc. are not included in the circulating market capitalization.

Published by
Choice Eastmoney
Frequency
Monthly
Next Update