Flashback: Last December, China finally shifted away from its zero-COVID policy — following the rest of the world.

This year, China is really embracing the Year of the Rabbit.

February economic data jumped to a strong start:

• Manufacturing grew at the fastest pace in over a decade.
• China’s home sales rose for the first time in 20 months.
• Services activity grew stronger than expected.

China is trying to increase domestic demand for goods and services after a near three-year lockdown dragged its economy down.

President Xi has pledged to increase resident income, focusing on low and middle-income households.

China’s National People’s Congress kicks off this weekend.

• Economists expect China to announce a GDP growth target of around 5% — higher than last year’s 3%.
• China bulls anticipate positive policy announcements.

The Invesco Golden Dragon China ETF (NASDAQ:PGJ) — a basket of US-traded Chinese stocks — has soared since last October.

The Chief Investment Officer of Kamet Capital Partners thinks “a lot of the selling was done in February” and that “things are coming back in a strong way” (BBG).