Crystal Palace have rejected a takeover bid from the Shanghai Naisi Investment Management Centre. The Chinese investment fund is understood to have offered considerably less than Palace’s £220 million asking price and has been unwilling to raise its bid, leading to the collapse of the proposed deal after months of negotiations.

Shanghai Naisi is the investment vehicle of Double-Edged Sports, a Chinese marketing company which owns Granada, the Spanish club. Its interest in Palace was revealed by The Times in April. Jiang Lizhang, a Chinese businessman, is understood to have met lawyers acting for Steve Parish, the Palace chairman, to discuss buying the club, without reaching an agreement.

Shanghai Naisi is believed to have paid Palace a deposit of £4.5 million to help facilitate the