Oct. 16 – The China Investment Corporation (CIC), the country’s US$200 billion sovereign wealth fund, denied media reports that it has incurred major losses in its investment in a U.S. money market fund.

According to China Daily, CIC confirmed that it had invested in the Reserve Primary through its arm, Stable Investment, but said it had withdrawn all its money before the latter suspended withdrawals last month amid the worsening U.S. financial turmoil.

“Currently CIC is a creditor, not a shareholder, of the Fund. Although CIC had invested in the Fund, it filed a redemption order before the Fund announced the suspension of redemption; in addition the Fund has confirmed in writing that CIC’s investment will be redeemed at par. On legal advice, CIC is confident of its position with regard to the full recovery of its money,” CIC stated on its website.

A Sept 29 U.S. Securities and Exchange Commission filing shows that Stable Investment held 11.1 percent of Reserve Primary’s institutional shares, worth US$5.4 billion at the beginning of the month. Stable Investment had also invested roughly US$5.9 billion in three other U.S. money market funds.