China has recorded a lower than expected local currency loans during the previous month, indicating the growth has slowed in the Chinese economy.

According to the figures released by the People's Bank of China, banks extended 522.9 billion yuan in local currency loans during November compared to 562.2 billion yuan recorded in the same month of the previous month. A survey of 30 economists has estimated a 550 billion yuan median for loans during the month.

The data also showed that M2 rose 13.9 percent from the same month of the previous year compared to a median estimate of 14.1 percent. It is believed that the country's leading economic policy makers will meet soon and set the targets for the coming and this will indicate the new government's expectations of growth in the world's second largest economy in 2013.

Analysts say that industrial output and retail sales figures released earlier were higher than analyst expectations and had indicated that a strong recovery in under way. However, the new local- currency loans figures has raised some concerns that the economy is facing a slowdown.

China's benchmark stock gauge, the Shanghai Composite Index fell 0.4 percent this morning at the time of reporting.