PREPARATION H?

BLOOMBERG--China’s Hong Kong-listed companies are a “new top trade” at Goldman Sachs Group Inc., which said the Hang Seng China Enterprises Index will climb at least 20 percent on valuation and the outlook for economic growth.

“We are recommending a new top trade,” Dominic Wilson, an economist at Goldman Sachs in New York, wrote in a report e- mailed yesterday. “We sense that Chinese equities have fallen off investors’ radars somewhat, positioning is light, and sentiment is, at best, skeptical, making us all the more keen to get involved.”

WB7: Need some help evaluating this call? Search China+Bubble on Google. You will get 40,900,000 page links on the subject.