Chinese State Bank Takes Shimao Legal Challenge to Hong Kong

A unit of Agricultural Bank of China Ltd. is taking its legal challenge against defaulted Chinese builder Shimao Group Holdings Ltd. to Hong Kong as it seeks to recover about 1 billion yuan ($140 million) in unpaid debt.

The state-owned bank filed the lawsuit in the city after it was unable to collect money awarded to it by a court in mainland China, according to court documents seen by Bloomberg News.

The move underscores the challenges creditors — even state-owned banks — face when trying to recover funds from troubled property developers. The sector has shown few signs of recovery ...