The mainland's bid to mobilise its massive domestic savings has continued successfully after the sixth state-approved mutual fund attracted subscriptions of about 100 billion yuan (HK$93 billion), equivalent to an oversubscription rate of about 50 times. The Puhui Fund - a closed-end investment fund of two billion yuan - was priced at 1.01 yuan a share and was aimed at retail investors, with corporates and government entities banned from subscribing. Beijing began an experiment with mutual funds in March in a bid to nurture the fund management industry and liberate individual savings of about five trillion yuan. The mainland's five previous mutual fund launches received a similarly enthusiastic reception. Analysts pointed out the launch of the Puhui Fund came amid cautious stock market sentiment, providing retail investors with cash to spare and with few investment alternatives to invest in a low-risk option. 'Investors were attracted to mutual funds on the expectation they will provide steady returns at a time of a sagging stock market and shrinking trading volume,' one Shenzhen-based broker said. 'There aren't many that can make a profit out of the stock market this year, but for those that invest in mutual funds, they have a yield of about 20 per cent on their investments,' he said. Both the Shanghai and Shenzhen A-share indices were 20 per cent off their peak in June. The chance of winning a share allotment is close to 2 per cent in the Puhui Fund given the high subscription, sources said. An official announcement of the outcome would be made soon. The Puhui Fund will be listed on the Shenzhen Stock Exchange next month. The hefty oversubscription would generate considerable interest income, which will be retained by the respective funds, boosting the per-share net asset value and benefiting successful applicants of the funds. The Puhui Fund is managed by Peng Hua Fund Management, which is 50 per cent held by Shenzhen municipal government-owned Guoxin Securities. The balance is shared equally among Zhejiang Securities, Liaoning-based Anshan Trust and Investment and Anhui International Trust and Investment. Puhui is expected to mark a good start to the second batch of five mutual fund launches separately controlled by Citic Securities, Shanghai-based Shenyin & Wanguo Securities, China Everbright Securities and GF Securities.