The Masters champion shot 70 to join South African Clark (69) at 11-under-par 277 at Sheshan Golf Club, one stroke ahead of Northern Irishman Graeme McDowell and Japan's Hiroshi Iwata, who both missed birdie putts at the last to tie for the lead.
The sudden-death playoff will start at the par-five 18th, a hole on which the big-hitting Watson can reach the green in two shots while Clark needs three to make the putting surface.
(Reporting by Andrew Both; Editing by John O'Brien)
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