The central government has allowed pension funds worth 360 billion yuan ($52.4 billion) from seven provinces and cities to be managed by professional investment agencies as it moves to address the problem of a rapidly aging society and the potential pension fund shortage.

Wang Zhongmin, vice-chairman of the National Council for Social Security Fund, said on Monday that the NCSSF will manage the funds on behalf of the seven local governments, including Beijing and Shanghai.

Media reports have cited people familiar with the matter as saying that the latest batch of pension funds will likely enter the stock market as early as this week.