BEIJING - Despite not-so-rosy figures on the Chinese economy, the latest survey released by Bank of America Merrill Lynch showed global fund managers were increasingly optimistic about China.

A net 28 percent of respondents from Japan, the Asia Pacific Rim and global emerging markets believe China's economy will strengthen in the next year, a contrast to the net 32 percent who predicted a weakening economy just one month ago, according to the survey.

"A spike in optimism towards China's economy is one sign that emerging markets could be set to recover in the months ahead," the September BofA Merrill Lynch Fund Manager Survey said.

Negative sentiment toward global emerging markets has stabilized. The number of investors saying that emerging markets are the areas they most want to underweight has fallen to a net 21 percent in September from a net 29 percent a month ago.

Investors have indicated that they are seeing the best value in emerging markets in almost a decade. A net 36 percent of respondents said that global emerging market equities are the most undervalued of all regions.

This is the strongest undervalued reading since Jan 2004, according to the survey.

The survey also showed investor bullishness toward European equities has reached pre-crisis highs as markets digest the emerging market sell-off.

Allocations to Euro zone equities have reached their highest level since May of 2007. A net 36 percent of global asset allocators are overweight in the region, more than twice the net 17 percent recorded in August.

In addition, the survey showed the gulf between allocations toward equities and bonds is at its widest since February 2011, and the second-widest in the history of the survey.

A net 68 percent of asset allocators are underweight in bonds, the greatest underweight position recorded since April 2006 - giving a bond-to-equity allocation spread of 128 net percentage points.

BofA Merrill Lynch said an overall total of 236 panelists with $689 billion of assets under management participated in the survey from Sept 6 to Sept 12. A total of 172 managers, managing $518 billion, participated in the global survey. A total of 123 managers, managing $272 billion, participated in the regional surveys.