Chinese stadium builder Lander Sports has confirmed it's terminating plans to buy a stake in Southampton Football Club.
The company cited unspecified policy changes as the Chinese government clamps down on overseas investments.
The deal would have made Southampton, currently ninth in the Premier League, the latest English club to gain Chinese investment.
In a statement issued to the stock market, Lander Sports said the process to buy an 80 percent stake in the Southampton's holding firm, St. Mary's Football Group, also involved having to gain approval from government bodies including China's foreign exchange regulator and top economic planner.
"Whether the company can eventually complete the acquisition of the target firm's shares remains uncertain," it said in the statement.
Southampton FC's players have praised fans for their support during yesterday's EFL Cup Final.
Thousands had travelled to Wembley to cheers the team on.
The Saints had fought back from two goals down, only for Manchester United to grab the winner with just three minutes to go.
Player, Dusan Tadic, says the fans gave them "extra energy":
Southampton Football Club has praised the "incredible support" from its fans at Sunday's English Football League Cup Final.
32,000 Saints fans travelled to Wembley stadium to see the Club take on Manchester United.
Saints player Manolo Gabbiadini scored twice and the sides were playing 2 - 2 for most of the second half. However Man U scored a third time in the closing minutes of the match and the game ended 3 -2.
The Club says it was an 'emotional day' and it 'won't ever forget' the support.
Football match report here:
Darren Richman was at Wembley for ITV News. Here are the three things he learned from the EFL Cup FinalRead the full story ›
Zlatan Ibrahimovic once again proved his worth to Manchester United, with two decisive goals against Southampton at WembleyRead the full story ›
Thirty-two thousand Saints fans are hoping for their side's first major trophy since 1976.
Claude Puel tells the media at a conference how he hopes his club can win for the fans.
Thousands of hopeful Saints fans travelled up to Wembley this morning for the much anticipated EFL cup final game against Manchester United. The team have only made it to the final once before and that was nearly forty years ago. Juliette Fletcher was with the fans as they set off.