The Crouching Tiger, Hidden Dragon star's lawsuit said the reports were "seriously defamatory" and "false".
An article in Apple Daily claimed Zhang "is a prostitute" and had sex with disgraced top official Bo Xilai and his wealthy associate Xu Ming for money on "numerous occasions", the court document said.
The tabloid also alleged the 33-year-old actress had sex with other top officials and "unnamed rich persons", and had accrued a fortune worth £71m from these illicit liaisons over 10 years.
"The plaintiff has been subjected to public odium, hatred, contempt or ridicule," the suit signed by the actress said, adding it would seek unspecified damages.
"The plaintiff's public image has also been seriously and continuously undermined which has caused and will continue to cause loss and damage to her profession and career."
Apple Daily ia a Chinese-language newspaper known for racy celebrity gossip and strong criticism of the Chinese communist authorities.
The story was removed from the newspaper's website after Zhang threatened to sue last month.
Bo was sacked from his post as boss of Chongqing city in March and then suspended from China's powerful central politburo for "serious discipline violation" - code for corruption.
He has not been seen since.
His wife, Gu Kailai, is in custody under suspicion of ordering the murder of British businessman Neil Heywood.
Zhang Ziyi also denied Apple Daily's assertion that she was now under investigation by Chinese authorities and was barred from leaving China.
A spokesman for the star, whose other films include Memoirs Of A Geisha, House Of Flying Daggers and Rush Hour 2, said in a post on Chinese social media that Zhang "will not tolerate the recent irresponsible media rumours".
"The legal proceedings mean that we have started down the road to maintaining her legal rights and interests. Justice can be expected soon," the spokesman said.
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