Chinese authorities' strategy to maintain currency stability sustainable?

Chinese authorities again explicitly stated their inclination towards maintaining a "stable" currency, and reiterated that there is no basis for CNY depreciation. Vice President Li Yuanchao also said during Davos forum that China has no intention to devalue its currency to boost exports. 

There is evidence to show China has again intervened in the market aggressively to deliver this message. Markets skeptical as to how long the authorities can sustain this strategy. The answer is "of course not". However, China sees the currency depreciation has endangered the financial stability as 1% depreciation of CNY against USD in the past three weeks triggered massive stock rout and global market gyrations. 

"Given that China still has a lot of instruments, it is very likely that the stability will be maintained till when China deems appropriate. At the same time, China might be anxiously waiting for a "game changer" to turn the focus from its currency to something else," said Commerzbank in a report