Very little "China upside" has been priced in, says Goldman analyst Noah Weisberger, noting Asian-focused funds are "significantly underweight" China. His team is forecasting a big 19% gain in Chinese equities traded in Hong Kong next year.
Goldman is pairing its long-China call with a short on copper (JJC) due to "abundant supply and a lack of accelerating demand."
The long/short idea is #4 in Goldman's list of top trade ideas for 2014. Previous ideas are here.
Chinese ETFs: FXI, PGJ, GXC, FXP, HAO, CYB, YINN, CNY, TAO, CHIQ, CHIX, MCHI, YANG, PEK, CQQQ, XPP, QQQC, DSUM, YAO, CHXX, ASHR, CHII, CHXF, FXCH, ECNS, CHIE, YXI, CHIM, KWEB, KFYP, TCHI, FCA, CHLC, CHNA