The CIC rejected reports that it may have more than five billion dollars frozen in the Reserve Primary Fund, saying it asked to withdraw its investment before the fund was suspended last month, according to a statement.

"The fund (Reserve Primary Fund) has confirmed in writing it will return all principal and interest to CIC," the statement said.

"Now CIC is no longer a shareholder in the fund, but a creditor," the statement said.

The CIC, through an affiliate, was the largest institutional shareholder in the fund as of September 1, Dow Jones newswires reported, citing a Securities and Exchange Commission filing.

The Reserve Management's flagship Primary Fund caused a run on money market funds last month after falling below the dollar-a-share mark due to its investments in debt belonging to the bankrupt firm Lehman Brothers.

CIC's affiliate, Stable Investment, held 11.1 percent of Reserve Primary's institutional shares as of September 1, a stake that may have totalled nearly 5.4 billion dollars, based on the SEC filing.

China set up the 200 billion-dollar CIC last year to invest part of the country's 1.8 trillion dollars in foreign reserves overseas to guard against devaluation and extend its financial influence.

The Reserve Primary Fund episode was expected to make already cautious Chinese institutions even more wary of the risks of investing in Wall Street.

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