UPDATE 1-China's CITIC Bank tries to seize real estate assets in Canada

(Adds Chinese Foreign Ministry comment)
By Julie Gordon
VANCOUVER, June 27 (Reuters) - China CITIC Bank Corp Ltd
601998.SS has launched a Canadian lawsuit to try to seize the
assets of a Chinese citizen the bank claims took out a
multi-million dollar loan in China then fled to Canada, the
lender's Vancouver-based lawyer said on Monday.
The bank is looking to seize numerous Vancouver-area homes,
valued at some C$7.3 million ($5.58 million), along with other
assets, according to the lawsuit, which was filed in the Supreme
Court of British Columbia in Vancouver on Friday.
The defendant, Shibiao Yan, owns three multi-million dollar
properties in a Vancouver suburb and lives in a C$3 million
Vancouver home owned by his wife, according to court documents.
China is in the midst of a massive corruption crackdown and
has stepped up efforts to find fugitives it says are hiding
stolen assets abroad. The lawsuit comes amid a debate about the
role foreign money, particularly from China, has played in
Vancouver's property boom.
"The person involved left China with a large debt owed,"
said Christine Duhaime, a lawyer who represents China CITIC Bank
in the case, adding that she was not aware of any criminal
charges against the man.
Yan could not immediately be reached for comment. He has not
yet filed a response to the lawsuit and the claims have not been
proven in court.
China has been working with Canada for years to finalize a
deal on the return of ill-gotten assets seized from those
suspected of economic crimes. The agreement was originally
announced in July 2013 and has not yet been ratified.
But it is rare for Chinese banks to use Canadian courts to
pursue those who have left the country.
Chinese Foreign Ministry spokesman Hong Lei said the bank
was protecting its rights in accordance with the law.
"This is a normal thing to do internationally," Hong told
reporters in Beijing.
According to the lawsuit, China CITIC Bank is seeking
repayment for a line of credit worth 50 million yuan, or roughly
$7.5 million, taken out by a Chinese lumber company and
personally guaranteed by Yan, who was the company's majority
shareholder at the time.
Vancouver residents have questioned the legitimacy of
foreign funds invested in the city's real estate market and have
urged authorities to do more to scrutinize their origin.
Housing prices in the west coast city have jumped 30
percent in the last year.
($1 = C$1.3)