Up to 600 billion yuan pension fund could be invested in domestic stock market, an official estimates in a press conference in Bejing Friday. 

Pension fund is allowed to be invested in new products, including domestic stock markets, but restricts the maximum proportion of investments in stocks and equities to 30 percent of total net assets.

Deputy Finance Minister Yu Weiping said that China will start investing of the pension fund after collection. Currently China is drafting regulations on pension collection and transfer.

China is capable to ensure long-term stable returns and will control the risk associated with the pension fund investment, says You Jun, Deputy Minister of Human Resources and Social Security.

You Jun estimates the fund has assets of around 2 trillion yuan (326.8 billion U.S. dollars) that could be invested.The role of the investment is not to support the stock market, or to rescure it. He underlines that the maximum proportion of investments in stocks and equities is 30 percent of total net assets.

China's State Council published the final guideline on investment for the country's massive pension fund on Sunday, effectively opening the gate for more diversified and riskier investment.