Some of China's biggest banks have cut off a handful of their European counterparts from borrowing and derivatives trading as they seek to reduce their exposure to the simmering crisis on the Continent, people familiar with the matter said.

Chinese state-owned banks including Industrial & Commercial Bank of China, Bank of China and Bank of Communications have scaled back their dealings with France's Societe Generale, BNP Paribas and Credit Agricole and at least in one case with Switzerland's UBS, people familiar with the matter said.