The deal, the biggest Chinese investment in a European club, follows retail giant Suning Commerce Group’s purchase of Milan’s rival Inter last year.
In a statement published on Milan website, club president Silvio Berlusconi’s family holding Fininvest said it had sold its entire 99.93% stake in the club to Yonghong.
The deal had been provisionally agreed on August 5th, 2016 but persistent problems meant that the takeover was not completed officially for another eight months.
The new owners have also agreed to take on Milan’s debts, which the statement said are worth around £186.5m.
Milan are currently sixth in Serie A, 10 points off the Champions League qualification places with seven games to play.
Also, statement released by the 18-time Scudetto winners and seven time European champions confirmed new board positions at the San Siro outfit will be confirmed on Friday.