List of World's Largest Stocks Dominated By U.S. and China, Energy Sector

After rising 13% overnight, PetroChina (PTR) eclipsed GE as the world's second largest company with market capitalization of $433 billion. In addition to PTR, seven other names on the list of 25 largest companies come from China. Besides being a Chinese company, PTR also has another factor working in its favor - it's an energy company. Of the 25 names listed below, eight also come from the energy sector.

One popular trend heading into this Summer was that after several years of underperforming small caps, valuations in U.S. large caps were becoming more attractive. On a global basis, however, the valuations of large cap stocks are not as attractive. The average P/E ratio on the 25 largest stocks in the world is 22.5 times trailing earnings.