According to a report by Reuters, fears on any immediate monetary policy tightening in China had been eased due to a slowing yearly inflation rate shown in November. The report said Chinese authorities are to meet this week to outline their priorities in reform and policy for the year 2014.

The increasing bond yields and money market rates were clear indicators of the People's Bank of China (PBOC) tightening conditions on liquidity in order to contain credit growth and to reduce debt levels. However, the news agency said there was little proof of a sharp turnaround in the mainland's monetary policy.

On Monday, the National Bureau of Statistics said the yearly consumer inflation rate slowed to 3% from its eight-month high of 3.2%. Analysts had anticipated the inflation rate to be retaining its level recorded on October.

Xiangcai Securities economist in Shanghai Luo Wenbo said, "Inflation will not be a big problem in the coming months and we expect monetary policy to stay neutral."

Also in November, consumer prices dipped 0.1%, which was the first time in six months and a touch weaker than what market had expected it would become flat.

Barclays Capital economist Jian Chang in Hong Kong said in a research note, "While headline inflation could moderate further in December, due to a high base last year and the PBOC maintaining a tightening bias on liquidity, upward pressures on inflation remain."

However, data on factory output, fixed-asset investment and retail sales that will be released on Tuesday are expected to be moderate and are consistent with expectations that yearly growth will be slowing down a bit in the fourth quarter from the last one, said Bloomberg in its report,

Chinese leaders stated that they will accept slowing growth as they will attempt to remake the mainland's economy to resist become dependent on investment and exports.