The selloff in Chinese stocks accelerated Monday , adding pressure on Beijing, which is planning to flood its banking system with new liquidity to offset effects of its recent surprise currency devaluation , according to Chinese officials and advisers to the central bank. Stocks fell sharply in morning trading, with the Shanghai Composite Index down about 8%, bringing its losses since its mid-June peak to roughly 37%. Stock markets also were down Monday morning in Japan and South Korea. The expected move to free up more funds for lending—by reducing the deposits banks must hold in reserve—is directly aimed at countering the effects of a weaker currency, which could send more funds away from Beijing’s shores. The moves reflect an economy increasingly failing to cooperate with Chinese leaders’ playbook to control the world’s No. 2 economy. Beijing’s struggles this summer have spooked many investors into viewing China as a […]