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.