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On the big stage of global stock markets, the stock markets of China and the United States are often compared. Recent data show that the forward P/E ratio of MSCI China Index is only 10.8 times, which is about half of the S&P 500 Index and MSCI US Index. However, the truth behind this is not so simple.

This undervaluation of China's stock market is partly due to the fact that several large enterprises, such as Tencent Holdings, have more than 12% of the MSCI China Index, and their forward P/E ratio is 17.5 times. This means that if these large enterprises are excluded, the valuation of other stocks may be cheaper. What's more shocking is that the total weight of Chinese stocks in this benchmark is even lower than that of Apple.

But does this mean that China's stock market is now a good time to buy? For investors seeking value, now may be a good opportunity. However, investors also need to realize that the market risk may still be high.

In the future, with the further opening up and structural adjustment of China's economy and the continuous support of the government for innovation and technology, the valuation of China's stock market may be improved. But before that, investors need to do sufficient research to ensure that they understand what they are investing in.

In short, although the valuation of China's stock market is relatively low, this does not mean that it is a risk-free investment. Investors should make wise investment decisions on the basis of in-depth understanding of the market and company fundamentals.