Subscriptions to new mutual funds hit a record high on Tuesday, pulverizing the record set in December last year.

Neixu Dongli (literally "domestic demand incentives") Fund, a new mutual fund issued byShanghai-based China International Fund Management Co., took in a record 90 billion yuan (11.7 billion U.S. dollars) of subscriptions,company sources said on Wednesday.

On December 7, a mutual fund issued by Harvest Fund Management took in 42 billion yuan (5.4 billion U.S. dollars).

Industry observers said the huge subscription proved that investors were dizzyingly optimistic about prospects for domestic equity markets.

Late last year China imposed a two-month suspension in approval of new mutual funds after the then-record subscription to the Harvest Fund Management fund, amid worries that speculators were causing stock prices to rise too fast.

The nation's securities watchdog has ordered mutual fund managers and sellers to help individual investors better understand the risks involved in buying stocks.

A special investor education fund should be established by each fund management company, said theChina Securities Regulatory Commission(CSRC).