According to the report from People's Bank of China (PBOC), chinese banks issued 1.14 trillion yuan worth of new yuan loans in December. Economists expected 1.1 trillion yuan of new loans in December. In November, new loans stood at CNY1.39 trillion.

Total social financing, a broader measurement of credit in the economy that includes both bank loans and nonbank financing, was CNY2.1 trillion in December, up from CNY1.99 trillion in November.

Outstanding yuan loans grew 12.3% from a year earlier, a notch below 12.4% growth forecast by analysts and November's pace, which was also 12.4%.

The central bank is widely expected to keep its policy supportive despite recent signs of improvement in the economy as Sino-U.S. trade tensions ease. Economic growth cooled to 6% in the third quarter, the slowest in nearly 30 years.