China's foreign-exchange reserves data for January, due on Tuesday, may surprise on the upside after a long downtrend, an analyst said.
Hao Zhou, senior emerging markets economist for Asia at Commerzbank, told CNBC's "Squawk Box" on Monday that the market should prepare for an upside surprise in the data, particularly as mainland authorities were likely to defend the psychological $3 trillion level.
China reported that its foreign exchange reserves fell for a sixth straight month in December, declining by $41 billion for the month, to $3.011 trillion, the lowest since early 2011. At their pinnacle, reserves reached around $3.99 trillion in mid-2014.
Analysts have said previously that while the markets may be fixated on $3 trillion, there's little fundamental basis for the fixation, with an adequate level likely around $2.25 trillion.