Links with Multi-byte Characters are Displayed as HTML Escape Characters (&#xxxxx;)

Steps to reproduce:

1. Go to an existing page in Confluence 4.0.x
2. Edit the page and insert a link associated to another page in Confluence which title contains multi-byte characters e.g. да как вы это делаете
3. Save the page
4. Edit the page again and go to the created link and edit it
5. click on the "search" tab if it is not already selected
6. The result would be as editlink.jpg. Multi-byte Characters are Displayed as HTML Escape Characters (&#xxxxx which makes it troublesome to search for pages containing multi-byte characters.