China’s comeback is just getting started. In fact, as the country abandons its COVID-fueled policies that stifled growth, Chinese stocks are staging quite a rally.

This rally comes as the world’s second-largest economy pull out all the stops to revive its economy. Even better, analysts say China’s GDP growth could recover from 2.8% in 2022 to 4.9%. Plus, according to Barron’s, “strategists see Chinese stocks outperforming other parts of the world, especially with investors ‘insufficiently exposed’ to Chinese stocks as China’s economic activity and earnings growth are poised to accelerate rapidly from a low base and risks related to domestic policy and geopolitics ease for now.”

Accordingly, investors may want to pay close attention to these three top Chinese stocks right now.

iShares MSCI China ETF (MCHI)

One of my favorite ways to trade China’s recovery is with an ETF, such as the iShares MSCI China ETF (NASDAQ:MCHI). After plummeting from about $95 to $35 within two years, the ETF is finally showing signs of life again. Last trading at $53.96, I’d like to see the MCHI ETF challenge $65 per share again soon.

With an expense ratio of 0.58%, the ETF focuses on mid- to large-cap Chinee stocks that are available to international investors. Some of its top holdings include Tencent Holdings (OTCMKTS:TCEHY), Alibaba Group (NYSE:BABA), JD.com (NASDAQ:JD), Pinduoduo (NASDAQ:PDD), Baidu (NASDAQ:BIDU), Netease (NASDAQ:NTES), BYD Co. (OTCMKTS:BYDDF), and dozens more. What’s nice about the MCHI ETF is that I can gain exposure to 623 stocks for less than $60 a share.

So, if I bought 100 shares of the ETF, it would cost me $6,000. If I were to buy just 100 shares of Alibaba, it would cost me $11,838.

BYD Co. (BYDDF)

With a global electric vehicle boom alive and well, BYD Co. should be one of the top beneficiaries. For one, BYD is already outpacing Tesla (NASDAQ:TSLA) in terms of EV sales. In 2022, for example, BYD reported sales of 1.9 million EVs. Meanwhile, Tesla sold 1.3 million.

Two, the company is quickly expanding, with plans to move into another 15 international markets. These markets include Japan, Thailand, Mexico, Malaysia, Vietnam, and Mongolia. That level of expansion alone shows BYD is very serious about quickly expanding its market share.

Three, the company just recorded monthly sales of 235,197 in Dec., up from only 93,945 a year earlier.

Global leaders want millions of electric vehicles on the road by 2030, and major automakers are quickly abandoning internal combustion engines for EVs. President Biden, for example, wants 50% of all new autos sold in the U.S. to be electric vehicles by 2030. Globally, 10% of all new autos bought were EVs last year and that could jump to 40% by the end of the decade, says Bloomberg NEF. In my view, each of these factors should propel BYD Co. to new highs from here.

Alibaba (BABA)

Chinese e-commerce giant Alibaba is one of the biggest stocks in the region. While the stock has seen better days, it’s starting to show signs of life again. In fact, with China reopening, the crackdown on Chinese tech companies is coming to an end, too.

As noted by CNN, the crackdown on internet companies is “basically” over, according to Guo Shuqing, the Communist Party boss at the People’s Bank of China. “Next, we’ll promote healthy development of internet platforms,” said Guo, who is also chairman of China’s Banking and Insurance Regulatory Commission. “We’ll encourage them to come out strong in leading economic growth, creating more jobs, and competing globally.”

Notably, BABA is also a “top pick” at Goldman Sachs, which says the company is a key beneficiary of China’s reopening, adding it to their Conviction List. Morgan Stanley also says BABA stock is mispriced. Barclays also just raised its price target on BABA to $141 from $114.

Each of these analysts are onto something in my view. I think higher highs are very possible from here.

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.