Fund managers have slashed their equities holdings amid fears that economic growth in China and Europe will be much less than they hoped for just a month ago, according to the latest monthly survey by Bank of America Merrill Lynch.

Only 7% of global investors expect China's economy to grow over the next 12 months, down from a net 51% in January - the sharpest change in sentiment about China's economy ever recorded by the survey. The turnaround came after China increased reserve ratio requirements for banks over the last month.