The owner of Reading FC has faced a series of court cases in China this year over unpaid loans worth hundreds of millions of pounds, The Reading Chronicle can reveal. 

These include loans linked to a company that was run by Chinese businessman Benny Kwong, who has been reportedly interested in buying the troubled football club. 

Among the businesses entangled in litigation is a shopping centre in Guangzhou, China, which specialises in women's manicures.

Tai United Holdings - which had Benny Kwong as a director until July 2022 - bought two shopping centres from Mr Dai in 2020, with the sites tied to financial guarantee contracts for borrowings of seven companies linked to the Royal's owner. 

Mr Dai and co-defendants had been ordered to repay the linked loans and outstanding interest that was in excess of £34 million as of June this year, according to the Chinese company. 

The Chinese court has not outlined how much is owed by each defendant. 

Meanwhile a company seemingly run by Dai Yongge's son - Mr Dai Bin - has reported that the Reading FC owner was a defendant in a claim over £240 million in loans earlier this year. 

The claims relate to two Chinese agriculture businesses that were 'indirectly controlled by a close associate (as defined under the Listing Rules) of Mr. Dai,' according to a report from the China Dili Group. 

The financial commitments facing the agriculture businesses 'were not revealed as at the time of the said acquisition', the group declared earlier this year. 

Experts from the Henley Business School have worked with The Reading Chronicle to verify the reports, as well as verifying that Dai Yongge was a co-defendant in claims for tens of millions of pounds across five Chinese court cases across June and July this year. 

According to reports from the Dili Group, 'PRC legal counsel had been engaged to advise on the Claims and vigorously defend against the Claims...particularly on the lack of proper authority in executing the guarantee contracts'.

Now Dai Yongge may face a range of restrictions in China over the unpaid debts, including 'a travel ban, restrictions on high spendings, public censure and recording in credit records and list of dishonest parties subject to enforcement', according to the report from Tai United Holdings. 

Dr Zhibo Qiu, a lecturer in International Business and Strategy at Henley Business School, said: "Misinterpretations of the term tend to focus on its social aspects, overshadowing these important economic functions.

"In China’s collectivist society, credibility is deeply tied to social relationships.

"Individuals with poor financial or commercial records can harm not only their personal reputation but also their social standing and relationships within the community, as trust and credibility are fundamental to social and economic interactions."

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Reading FC declined to comment when approached with questions about Dai Yongge's finances, his whereabouts, and his involvement in the sale of the club. 

A representative from China Dili Group spoke to The Reading Chronicle, but a spokesperson is yet to respond to a request for an on-the-record comment.