After a rough few years, Chinese stocks are showing big signs of life.

All as China just begins to reopen, and as analysts get a bit less gloomy.

According to Bloomberg, “The resumption of activity in China promises to unleash over $836 billion worth of excess savings, and may help ease fears of a global downturn as other central banks continue to tighten policy. Chinese equities stand to gain another 20%.”

Even better, Chinese stocks could be some of the top performers in 2023, with Morgan Stanley and Goldman Sachs noting the MSCI China Index could see another 10% of upside this year. Even JP Morgan just said Chinese stocks are likely to continue rallying on catalysts, such as the end of the zero-COVID policy, and easing geopolitical tensions.

“Arguably, the policy U-turn has happened at a much faster pace than anyone’s imagination,” they said. The sentiment and liquidity inflows have already improved in recent weeks thanks to the positive changes, which will drive the market valuation towards its long-term level, they added, as noted by the South China Morning Post.