China Regulator Says Having Effectively Defused Risks in Fannie, Freddie Bonds

China's foreign exchange regulator said on Saturday that it had effectively defused potential risks in investment in Fannie Mae and Freddie Mac bonds by taking practical and effective measures.

China's management of foreign reserves had always been based on safety, liquidity and profitability and the country employed various investment strategies, said the State Administration of Foreign Exchange on its website.

The statement came one day after the regulator denied losses from its investment in the two companies. Media reports had the agency's losses reaching around 450 billion U.S. dollars.

The regulator, which oversees China's more than 2 trillion U.S. dollars of foreign exchange reserves, also said on Friday that it had not bought any stocks from the two troubled companies.