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.