Beijing Paddles Hard as a Bear Market Threatens

With Chinese stocks down nearly 20% from their most recent high, Beijing has to balance its desire for stability with the need to appear calm

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Chinese stocks are almost in a bear market. That’s leaving Beijing in a pickle.

Shanghai’s main benchmark closed Friday nearly 20% down from its most recent high, set in January. Worries about escalating U.S.-China trade tensions have sent the index down 4% this week alone.

The trade-war rhetoric is just pushing Chinese stocks further in...