China's state pension fund is preparing to make its first investments abroad, putting up to 1 billion US dollars into foreign financial markets in an effort to improve returns on its reserves, The Standard reported. The step comes as the 230 billion yuan (28.75 million US dollars) National Social Security Fund tries to expand its resources to cope with the growing demands of China's aging population, said the paper. Beijing has begun allowing Chinese banks, insurance and other financial companies to invest in foreign financial markets in an effort to improve the return on their assets. Until recently, they were limited to investing in Chinese stock markets, which are small and subject to wild price swings, or government bonds, which pay low interest. The pension fund was created in 2000 to finance pensions paid by the central government, and faces soaring demands in coming years as the number of retirees rises.