Emerging market (EM) equities experienced a historic influx of $12.1 billion in the week ending January 24, as reported by Bank of America referencing EPFR data.
China led the surge with equity funds witnessing the largest inflow since July 2015, amounting to $11.9 billion – the second-highest ever recorded.
“Epic deflation of property stocks makes China the world's most enticing contrarian long "trade" (no-one believes it's an "investment"),” analysts wrote in a note.
Global equity funds attracted $17.6 billion, with $5.3 billion directed towards US equity funds.
European funds continued to face redemptions for a fourth consecutive week, totaling $1.9 billion.
Tech stocks saw their third consecutive weekly inflow, reaching $2.8 billion, the highest since August.
In the bond market, funds experienced a net inflow of $14.2 billion, while cash funds attracted $7.4 billion.
Investment-grade bonds observed $8.3 billion in inflows, whereas emerging market debt faced a third consecutive week of redemptions, with $900 million pulled out.