Is the Chinese bubble about to burst in European football? New state regulations will impact on investment and political pressure could see some owners sell up

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The Chinese revolution in European football has hit a speedbump as the country's government clamps down on money leaving the mainland, with one club owner ready to sell up as political pressure intensifies.

At least 20 sides across Europe have seen investment from China in the two years since president Xi Jinping announced a push for the national team to become a global football superpower.

However, Chinese authorities have now taken action to reduce the amount of cash leaving the country, in an effort to limit 'irrational' spending on projects abroad, curb the depreciation of the Yuan and guard against money laundering.

President Xi Jinping wants China to become a global football superpower in years to come

Southampton is one of several European clubs to receive significant Chinese investment

Those new regulations, in addition to increased scrutiny from financial authorities, look set to have a knock-on effect in the Premier League, EFL and further afield.

And Sportsmail understands one owner is actively engaged in offloading their shares.

Earlier this month, China's state council formally placed sports clubs on a widening list of industries in which investment is restricted overseas - alongside property, film, hotels and entertainment - in an effort to limit 'irrational' spending on projects outside the country.

While such investment is not banned, companies interest in acquiring a slice of Europe's football pie face significantly more substantial checks and balances from state regulators than before.

The complexities of the situation were highlighted by the recent purchase of an 80 per cent controlling stake in Southampton by Jisheng Gao and his daughter Nelly in August.

With the Gaos unable to use the finances of their company, Lander, to facilitate the move they had to stump up the £210million asking price from the family coffers.

Gao Jisheng is the new majority owner of Southampton after completing a takeover

But it is not only the logistical issues caused by the new regulations which could dampen the enthusiasm of Chinese businessmen when it comes to European football. The politics of the situation are also leaving investors fidgety.

In June, the China Banking Regulatory Commission became the latest administrative body to open an investigation into some of the most active investment groups.

Dalian Wanda, Fosun International and Suning, all of which hold stakes in major European clubs, have seen their purchases in a variety of sectors examined.

In particular, state authorities are interested in whether high-interest products and overseas loans were used to facilitate deals.

The situation is fragile and tense, with investors not wanting to be seen to be acting against the wishes of the state.

In an effort to show his company's willingness to fall in line with government policy, the chairman of Fosun, who bought Championship outfit Wolves for £45m last year, issued a public statement in which he supported the state council's new restrictions.

Dr Tony Xia is the owner of Aston Villa - one of six English clubs with Chinese investment

In a letter posted on Fosun's WeChat account, billionaire Guo Guangchang wrote: 'The recent scrutiny on overseas investments and financial irregularities are necessary, timely and can eradicate a lot of irrational investments.

'If we don't take some measures, foreigners will takes us as "dumb people with a lot of money".'

Wolves are one of six English clubs to have secured Chinese money over the past two years. Five have come from private companies or individuals.

Aston Villa are now owned by Dr Tony Xia, Guochuan Lai acquired West Brom for almost £200m in 2016, Paul Suen controls Birmingham City through the Virgin Islands-registered Trillion Trophy Asia and the Gaos hold 80 per cent of Southampton.

Only one group - the consortium of China Media Capital and CITIC Capital which hold a 13 per cent stake in Manchester City - are state-backed.

Now the Chinese government is taking a stronger stance. And it could herald another shift in the landscape of European club ownership just two years after the last.