BEIJING -- Fund buyers got agitated at the China Construction Bank (CCB) Xisi outlet in downtown Beijing as they were told more than half of the sales quotas were sold out only one hour after the new fund hit the market.

The Jianxin fund raised near 10 billion yuan earlier this week.

Fund frenzy in China had been underscored as authorities resumed the launch of five new funds and wished to pump up investor's confidence amid major stock market corrections.

Staying at the number 1,068 in the waiting list of CCB's Xisi outlet, Mr Sun was not among those in luck to get subscription of the new fund.

Working in a IT company in the high-tech Zhong Guancun, he plunged into fund investment pool as the Spring Festival ended after hearing of his cousin gleaned doubled yields from fund market last year, while his own saving in banks are creeping for the meagre 1.9 percent increase a year.

Sales quotas were set up and the 10 billion yuan cap is seriously enforced to ward off over-subscription, said He Bin, deputy fund manager of the Jianxin fund.

Funds raised more than 400 billion yuan as retail investors shifted low-interest bank deposits into the mainland Chinese bourses, which surged by 130 percent last year after a four-year slump.

Thanks to the booming stock market, equity funds continued to lead the increase with a 15 percent gain in January.

Government has beefed up tightening measures such as ordering bank loans out of the stock investment to cool down the sizzling market whose record high surges was tempered with volatility.

CSRC halted sales of funds in late November to keep the market from overheating after stock values on the Shanghai and Shenzhen exchanges more than doubled since the start of 2006.

Officials and market regulators have been repeatedly reminding investors of the risks the markets bring. CSRC has asked each fund management companies to set up special education fund to make investors aware of the risks.

The awareness program which includes advertisements in various mass media aims to help investors understand their own financial circumstances, better understand markets, along with the development history of funds and fund management companies.

Average annual yields of equity funds have undergone huge fluctuations since 2002 and even lost 11.9 percent in 2004, according to the figures released by the Galaxies Securities.

Investors' buying spree however showed no signs of abating in the week-long Spring Festival holiday as people shared their trophies when visiting friends and relatives -- more than 100 percent yields in the past one year, an equivalent of 50 years of bank interests.

Some retail investors said they will not focus their attention on the short-term up-and-downs, but it is still tough for new buyers to act rationally amid the current boom.

The frenzy has added mounting jitters to fund managers who run the massive stockpile for the millions of punters. "As a rational investor, we find limited satisfying objects worth investing", said Li Xuli, investment director of the Bank of Communications Schoroder Fund Management Co.

"I fought to get to sleep every night fearing big market tumbles to bring down profits, and it is the most tricky time in my eight years of career", Li spoke up his mind.

The benchmark Shanghai Composite Index plummeted 8.84 percent to close at 2,771.79 points earlier this week partly on profit-taking, the biggest daily dive since February 18 in 1997 when the index dropped 8.91 percent.

Fund managers suggest investors engage in long-term investment, while warning of speculative activities only after hearing of other people making money.