The new regulations also stipulate caps on cash injections from team owners, in order to reduce dependence on a parent company or a single shareholder. Every CSL club will be allowed to receive 94.2 million U.S. dollars in cash injections in 2019, with that amount decreasing year-on-year over the next three years.

The leagues will also introduce a cap on win bonuses in 2019, which will vary depending on whether the clubs are competing in the CSL or the Asian Champions League (ACL).

"Clubs that exceed the new caps will be subject to potential punishments, such as a restriction on the number of new transfers and points deductions," He Xi said.

In order to avoid the possibility of clubs circumventing the new restrictions, the CFA will also step up its crackdown on dual contracts and tax evasion, as well as closely monitoring lucrative endorsement deals. Clubs will not be allowed to pay their coaches and players through third-parties or in cash.

If a coach or player was found to have dual contracts, the club would face a points deduction or disqualification from the CSL. The coaches or players in question would be suspended from working in Chinese football for between one and three years.

Foreign players are unaffected by the new regulations, and there are no changes with regards to the transfer tax, with all foreign players costing more than 45 million RMB (7 million U.S. dollars) subject to a 100 percent levy charge to be paid into a grassroots development fund.

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