China's growth is expected to have re-accelerated to near 8 percent in the fourth quarter of last year, but there are some troubling inconsistencies in the economy, according to the China Beige Book released on Wednesday.
The latest survey by the U.S. based China Beige Book (CBB) International has found "shocking" evidence of falling loan demand in the world's second-largest economy.
"In the fourth quarter, we're seeing corporate loans decline significantly, very shockingly most of our bankers say less than 20 percent of their lending goes to new loans. Most of its going to debt rollovers or increases, they are not funding expansion. That indicates that this is not a period of strong expansion," Leland Miller, president at CBB told CNBC on Wednesday.
(Read More: China Fourth-Quarter GDP Growth Seen Rebounding to 7.8%)
The quarterly private sector survey that resembles the U.S. Federal Reserve's Beige Book is based on interviews with over 2,000 respondents, made up of business executives across sectors and regions in the mainland. The report, launched in 2011, uses methodology adapted from the Fed's Beige Book, according to CBB.