Chinese stocks are back in a bull market as investors buy into the nation's economic rebuild

• Chinese stocks are rebounding, with a number of gauges in technical bull market territory.
• The Hang Sang Tech Index is up more than 20% after bottoming out earlier this year.
• Meanwhile, the CSI 300 index of mainland Chinese stocks has rallied roughly 13% from a five-year low.

A key index of Chinese stocks has rebounded more than 20% from early year lows, in a possible sign that investor sentiment is on the mend.

After bottoming out in late January, the Hong Kong-based Hang Seng Tech index has risen 21%, and is now one of several sector gauges to have entered a technical bull market. 

Meanwhile, the CSI 300 of mainland Chinese stocks is up roughly 13% from a five-year low reached in early February.

It marks a sharp recovery after investors previously rushed for the exits on China's worsening economic conditions, causing an estimated $7 trillion to withdraw over the past three years. Debt, deflation, and sector instability are among a few of the challenges encouraging traders to opt out.

However, Chinese equity funds brought in over $3.5 billion in the first week of March, EPFR data shows, a sign that some may be stepping back in.

It was the same week the country held its National People's Congress, during which authorities set out a 5% growth target for the year. 

To achieve this, Beijing isn't relying on a big-ticket stimulus package, despite broad agreement that the approach could uplift its economy and potentially lower the fallout of its defaulted property sector. Instead, President Xi Jinping has touted a focus on high-tech growth and heavier manufacturing.

The policy shift is pulling in stock pickers, Bloomberg reported, as many look to win out from a well-placed early bet. For instance, the country's Semiconductor Manufacturing International Corp has jumped over 18%.

While foreign money is trickling back in, an equal amount of surveyed investors look to increase and decrease their exposure over the next year, Bloomberg's Markets Live Pulse survey showed.

After all, economic burdens should continue to mire China. Meanwhile, one analyst warned that the country's rising reliance on production will require its exports to jump, risking the rise of trade wars by next year.