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

Macro

2026-10-15

Description

The M2/total market capitalization of domestic listed companies is mainly used to evaluate the proportion of funds allocated by residents and enterprises in the stock market relative to the amount of funds in the entire society. A higher ratio indicates that the money supply in the market is larger relative to the size of the stock market, which may indicate sufficient funds but insufficient investment in the stock market; a lower ratio indicates that the stock market is relatively large or the money supply is relatively limited.

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
Hashtags
China Finance M2

AI Data Insight

In the third quarter of 2026, China's M2 to total domestic listed company market capitalization ratio rebounded to 3.25, significantly up from the previous value of 3.0824, indicating that the market money supply has expanded again relative to the stock market's scale. Although the M2 YoY growth rate in September slightly decreased to 7.2% and was lower than the market consensus expectation, the massive liquidity mostly remains stranded in the banking system and has not yet effectively injected into the stock market. Going forward, it is necessary to closely monitor whether the PBOC's easing policies and corporate earnings recovery can boost market confidence and prompt the activation of funds into the market.

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AI Data Insight

In the third quarter of 2026, China's M2 to total domestic listed company market capitalization ratio rebounded to 3.25, significantly up from the previous value of 3.0824, indicating that the market money supply has expanded again relative to the stock market's scale. Although the M2 YoY growth rate in September slightly decreased to 7.2% and was lower than the market consensus expectation, the massive liquidity mostly remains stranded in the banking system and has not yet effectively injected into the stock market. Going forward, it is necessary to closely monitor whether the PBOC's easing policies and corporate earnings recovery can boost market confidence and prompt the activation of funds into the market.

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Description

The M2/total market capitalization of domestic listed companies is mainly used to evaluate the proportion of funds allocated by residents and enterprises in the stock market relative to the amount of funds in the entire society. A higher ratio indicates that the money supply in the market is larger relative to the size of the stock market, which may indicate sufficient funds but insufficient investment in the stock market; a lower ratio indicates that the stock market is relatively large or the money supply is relatively limited.

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
Hashtags
China Finance M2