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Oceanwide and tycoon Lu Zhiqiang named in $1bn China suit

China Minsheng Banking Corp. acts as nation's real estate debt piles up

A Beijing construction site on Jan. 11: Scores of Chinese property companies have missed bond and loan repayments and consequently been cut off from much-needed funding sources.   © Reuters

China Minsheng Banking Corp., the country's largest privately owned lender by assets, has filed a lawsuit against developer Oceanwide Holdings Co. and its de facto controller, property tycoon Lu Zhiqiang, over a 7 billion yuan ($1 billion) loan dispute.

The bank's Beijing branch filed the suit against Oceanwide, Lu and two property developers based in the central Chinese city of Wuhan. The developers, Wuhan Centre Building Development Investment Co. Ltd. and Wuhan CBD Co. Ltd., failed to repay debts of 3.97 billion yuan and 3.05 billion yuan, respectively, China Minsheng said in a stock exchange filing on Friday.

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