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The percentage of respondents who felt monetary policy would remain unchanged in the next quarter rose 12.4 percentage points to 63.9 percent.

"There is nothing wrong with China relying on a currency anchor as a linchpin of financial stability.”

China, the largest holder of U.S. Treasury debt, edged up its holdings in July after two months of declines.

China's central bank decided to keep its loose monetary policy unchanged, according to 2010 China Financial Stability Report.

China doesn’t want “a few politicians” to attract votes by accusing China’s trade policies, especially the currency system.

Low interest rates will help reduce financing costs of the companies, but at the same time, the negative rate will further enhance inflationary expectations.

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