China's foreign exchange regulator says it didn't suffer any losses from its investment in Fannie Mae and Freddie Mac bonds. It says that media reports of up to 450 billion U.S. dollars in losses were "groundless."

In a statement posted on its website, the State Administration of Foreign Exchange says "Up until now, the capital and interest repayments of Fannie Mae and Freddie Mac bonds is normal". It added that annual yields of the bonds were around 6 percent between 2008 and 2010.

The regulator, which oversees China's more than 2 trillion U.S. dollars of foreign exchange reserves, also clarifies it had no stocks in the two troubled mortgage companies.

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