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Chinese Replace Europeans Funding New York Properties

China’s oldest bank is expanding in New York lending for trophy buildings as Europe’s debt crisis sweeps away the last wave of foreign financiers.

Bank of China Ltd. increased its loans outstanding on U.S. properties fivefold to $2.6 billion since 2008, with most of that growth in New York, according to Trepp LLC, a mortgage data provider. The bank agreed last month to refinance the Mandarin Oriental hotel in Columbus Circle owned by Dubai’s Istithmar World PJSC. The Beijing-based state-backed bank is making inroads after European lenders including Anglo Irish Bank Corp., pulled out of the market, Commerzbank AG’s real-estate lending unit stopped competing, and Societe Generale SA pared assets.