Sino-Europe's takeover of AC Milan is wobbling.

Bloomberg reports Sino-Europe Sports have lost the backing of Haixia Capital Management, leaving just Yonghong Li to buy Milan.

The situation is still very much in flux, as Sino-Europe Sports have apparently “lost the backing of its state-owned partner, leaving businessman Li Yonghong to find a way to complete the deal on his own, people familiar with the matter said.

“Haixia Capital Management Co. will no longer be an investor in Sino-Europe Sports Investment Management Changxing Co. after regulators at home stepped up criticism of sports deals, the people said, asking not to be identified because the talks are confidential.

“Haixia Capital may stay attached to the group in some capacity, one of the people said."