The rebound in China’s economy creates an opportunity for U.S. equity investors who can capture that strength by picking mining stocks, according to Goldman Sachs. “China economic data has improved,” David Kostin, Goldman’s head of U.S. equity strategy, said in a note. “We recommend investors own mining stocks, which are levered to China growth through rising metals prices.” Goldman believes that metals and mining stocks stand to benefit from revived economic growth in China because it accounts for about half of global demand for industrial metals. China has seen robust growth as it bounces back from the government’s Zero Covid policy, Goldman said, noting that recent economic data all point to a continued re-opening. Mining companies in the U.S. could benefit indirectly from China demand due to higher commodity prices, Goldman said. The Wall Street firm’s commodity strategists expect the S & P GSCI Industrial Metals Index, which tracks metals prices, to rise by 32% over the next year. Metals and mining stocks typically mirror the performance of the index, Goldman said. FCX AA YTD mountain Freeport McMoRan and Alcoa Goldman named Freeport-McMoRan and Alcoa as two favorites. The firm said mining stocks in general are relatively cheap right now, trading at a 20% discount to the S & P 500. Shares of Freeport-McMoRan are up more than 3% this year, while Alcoa is down more than 16% in 2023. Investors can also get exposure to mining — and indirectly China — by investing in ETFs. The SPDR S & P Metals & Mining ETF tracks the S & P Metals and Mining Select Industry Index, while the iShares MSCI Global Metals & Mining Producers ETF follows select global metals and mining producers, excluding gold and silver.