China's December money supply data signaled weak fund demand as the pace of total social financing slowed as governments and companies reduced bond issuance, and as M2 expanded at a weaker pace than expected, data from the People's Bank of China showed on Tuesday.

Aggregate financing was CNY1.31trillion, down from November's CNY1.99 trillion and falling short of expectations for CNY1.85 trillion. Shadow banking transactions fell by CNY141.6 billion compared to a contraction of CNY26.3 billion in the previous month.

M2 money supply growth grew 11.8% y/y, down from 12.4% in November, due to slower growth of deposits. The median forecast was expecting 12.3% growth.

M1 growth rate increased 3.7% y/y, decelerating from November's 4.6%% y/y pace. New loans increased by CNY1.4 trillion from November's CNY1.21 trillion, higher than the forecast of CNY1.2 trillion.