Despite China's efforts to curb capital outflows, the country "will keep bleeding money," a foreign exchange strategist said Tuesday.



The world's second largest economy released foreign-exchange reserves data for January on Tuesday.

Economists polled by Reuters had said China's FX reserves would likely fall about $10.5 billion in January, roughly a quarter of the drop seen in December, leaving them hovering around the closely-watched $3 trillion level.

UBS' foreign exchange strategist Wayne Gordon said China's foreign exchange reserves will likely fall to $2.7 to $2.8 trillion by the end of the year, with reaching 7.2.

The Chinese currency has been under pressure in the last year as Chinese conglomerates snap up U.S. and European companies, while Chinese individuals purchase U.S. real estate amid political uncertainties and expectations of a weaker yuan.

The USD/CNY fix was little changed at 6.8604 on Tuesday from 6.8606 on Monday. On the spot market, the pair is up 4.4 percent from a year ago.