Information sources have reportedly revealed that Citigroup America has warned private bankers serving Chinese clients not to discuss RMB or hedge currency risk when travelling to mainland China, highlighting the growing sensitivity of onshore transactions.

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According to reports, Citibank has no private banking operations on the mainland, mainly serving its wealthy clients in offshore wealth centers such as Hong Kong or Singapore. But the bank updated its guidelines last December, warning managers not to engage in renminbi-related operations.

The report highlights that, at the time of the launch of the guide, China’s economic growth had been less than satisfactory, especially as real estate continued to be depressed, and stock markets had fallen sharply, making China one of the worst-performing markets in the new year. Last month, the international rating agency, Moody, reduced the outlook for China’s sovereign bonds to a negative one, highlighting global concerns about the debt levels of the world’s second largest economy.

According to the analysis, China-United States tensions have also led to greater caution in global banking institutions, and a negative attitude toward China could provoke a backlash in China. A report by the international investor, Goldman Sachs, about the fall in Chinese banks last year elicited criticism from a large Chinese bank and official media.