Old-school stimulus, HK protests, PBOC still selling FX

China’s policymakers are returning to the familiar playbook of local government infrastructure spending to shore up growth but still, it appears, on a relatively small scale. Meanwhile, despite the confusing signal sent by the rising value of its foreign exchange reserves, the People’s Bank is still intervening to support the renminbi, including through foreign exchange sales. And the protests in Hong Kong are bringing into focus the challenge to the city’s economic outlook posed by a more assertive leadership in Beijing.