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Goldman’s Buy-China Call Has History on Its Side

Chinese stock bulls, battered by the world’s worst first-half losses, now have history on their side.

While this year’s 3.4 percent drop in the Hang Seng China Enterprises Index thwarted optimistic forecasts by Goldman Sachs Group Inc. and Morgan Stanley, the second half has proven a much better time to buy during the past decade. The gauge of Chinese shares traded in Hong Kong rose an average 12 percent from July to December, versus a 1.1 percent gain in the first six months.