"Shanghai authorities have run virus tests for HIV, hepatitis B and hepatitis C on the reported batch and they all show negative", the National Medical Products Administration said.
China is hit regularly by quality-control scandals, fuelling fear over the safety of food and medicines and anger at regulatory lapses.
IVIg is used to help people who have weakened immune systems, whether from an autoimmune condition like lupus or as a side effect of receiving bone marrow transplants.
China has struggled in the past with the spread of HIV due mainly to infected blood transfusions, according to the BBC, but recent reports show that the number of people in the country contracting the virus in this way has dropped almost to zero. Just $5 a month.More news: Injured Osaka pulls out of Qatar tennis
It is controlled by the listed China Meheco Group, one of China's biggest pharmaceutical firm.
The administration's clearance of the batch, produced by state-owned Shanghai Xinxing Pharmaceutical Company, contradicted a notice from the National Health Commission on Tuesday announcing its contamination and warning hospitals to immediately suspend use of the treatments.
A staff member of the health commission in north-west China's Shaanxi province said 10 hospitals had reported back saying they had yet to find any patients who had contracted HIV. Incidents include the falsifying of production records for rabies vaccines that prompted a nationwide crackdown on the industry and the injecting of other faulty vaccines.
Other hospitals in central China's Henan province and in Shanghai also said they are now monitoring their patients.More news: Sixers trade former No. 1 overall pick Fultz to Magic
Public outrage over medical scandals has alarmed the leadership of the ruling Communist Party, moving it to respond more quickly and firmly than in the past, including bringing criminal charges and billion dollar fines.
This latest blow to confidence in China's health services comes less than a month after it was revealed that 145 children in the eastern Jiangsu province were treated with expired polio vaccines, sparking widespread protests from parents and the investigation of 17 local officials. During the 1990s and early 2000s, thousands of Chinese were infected with HIV when they sold or received transfusions of tainted blood products. Towns that were particularly hard-hit, many in Henan province, became known as "AIDS villages".
The Associated Press contributed reporting to this story.More news: Khashoggi murder 'perpetrated' by Saudi officials — United Nations rapporteur