China said on Friday that liquidity in the nation's banking system hit its lowest level in almost a year following the central bank's decision to let a credit crisis spike short-term rates in late June.

The People's Bank of China said that the social financing aggregate, a broad liquidity gauge for the nation, dropped to 1.04 trillion yuan in June from 1.19 trillion in May.

The bank also reported that China's M2, a broad measure of the money supply, rose a modest 14 percent, its slowest growth in 6 months, and well short of the estimated 15.2 percent expected gain.