NEW YORK (MarketWatch) -- China's reluctance to put up the money to back another U.S. financial-services company does not bode well.

On its face, it looks as though China has lost confidence in Citigroup Inc. C, -2.12% , U.S. financial services in general or the U.S. market as a whole. Reports Monday said the government in Beijing had put the brakes on a plan by its investment arm, China Development Bank, to invest $2 billion.