Developer Oceanwide and Tycoon Lu Zhiqiang Sued in $1 Billion Loan Dispute

China Minsheng Banking Corp. Ltd. (600016.SH +0.57%), the country’s largest privately owned lender by assets, is suing developer Oceanwide Holdings Co. Ltd. (000046.SZ +1.50%) and its de facto controller property tycoon Lu Zhiqiang over a 7 billion yuan ($1 billion) loan dispute.

The bank’s Beijing branch has filed a lawsuit against Oceanwide, Lu and two property developers based in the central Chinese city of Wuhan. The firms, namely 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 Friday stock exchange filing.