The City Football Group (CFG) has sold the stake to CMC (China Media Capital) and investment company Citic Capital.
New shares will be issued in CFG in addition to those held by its owner, Abu Dhabi United Group (ADUG).
CFG is an investment and development company which is privately owned by Sheikh Mansour of the Abu Dhabi royal family. As well as the three clubs it owns outright, the group also has a stake in Japanese side Yokohama Marinos, as well as a variety of scouting and training affiliates and academies.
The move follows a visit to Manchester in October by the President of China, Xi Jinping.
Ruigang Li, who founded and chairs both the Chinese firms, will represent their consortium by becoming the seventh CFG board member.
The market in the East Asia is the rapidly growing as the biggest clubs from across Europe look to increase their profile, this move from City's owners will be of huge significance as they look to match their rivals Manchester United in terms of worldwide appeal.