Money flooded into beaten-down Chinese shares over the past week as authorities in Beijing ramped up stimulus measures to support the ailing stock market, according to Bank of America Corp. strategists.

A total $11.9 billion was allocated to Chinese shares in the week through Jan. 24, the second-highest weekly tally ever, a team led by Michael Hartnett said, citing EPFR data. That accounted for almost all of the record $12.1 billion of funds that rushed into emerging-market equities.

Buying Chinese shares is now “the world’s most enticing contrarian long ‘trade,’” Hartnett said in a note. Still, he warned that “no one believes it’s an ‘investment.’”

A volatile week saw the MSCI China Index falling to the lowest level since October 2022 amid growing concerns over the country’s economic health. But the benchmark would roar back and record its strongest three-day gain in over a year as Beijing stepped up its response. China’s central bank provided more liquidity to the economy on Wednesday and hinted at more support to come.

The MSCI China Index fell 2% on Friday, dragged by steep losses in healthcare shares WuXi Biologics Cayman Inc. and WuXi AppTec Co. amid concerns over potential US restrictions.

A relentless decline in Chinese equities has drawn interest from some market participants. Bridgewater Associates told investors it was “moderately bullish” on Chinese stocks, days before the latest meltdown. Gavekal, meanwhile, said Chinese stocks now offer the best value in the world.

Goldman Sachs strategists said earlier this week that the risk-reward of Chinese equities is skewed asymmetrically to the upside. They saw value in bullish options tied to the MSCI Emerging Market Index, as a way to gain exposure to a potential rebound in Chinese stocks.

Elsewhere in the market, Bank of America strategists said inflow into technology-focused stock funds reached its highest level since August. About $14.2 billion was poured into bond funds, while gold saw its first inflow in six weeks.

This article was provided by Bloomberg News.