Hong Kong police said they had arrested a 51-year-old man in connection with a money laundering case but declined to confirm his identity. Radio and television reports in Hong Kong identified Yeung as the man arrested.
Birmingham's acting chairman Peter Pannu issued a statement saying Yeung, who is also chairman of Birmingham International Holdings Ltd (BIHL), City's parent company, was assisting Hong Kong police in relation to certain criminal investigations.
In a statement on the club's website Pannu said: "I have just had a call from the Birmingham International Holdings lawyers informing me of the position in Hong Kong and I have also been informed by them that Carson is assisting with enquiries that have nothing to do with the operation of BIHL in Hong Kong and therefore nothing to do with the operation of the club, and relate to other matters.
"People are reminded that in recent years members of the previous Board were placed on bail for a significant amount of time and nothing came of it.
"I am only using this as an example to calm any fears. The law says a person is presumed innocent until proven guilty.
"Until I find out more information about this matter there is no further comment to be made."
In a statement, Hong Kong police said the man arrested had been charged with five counts of "dealing with property known or believed to represent proceeds of an indictable offence" and added that he was being held in police custody.
They said the man would appear in court in Hong Kong on Thursday.
Yeung took control of Birmingham City in October 2009, soon after they were promoted back to the Premier League after a season in the Championship.
Last term they won the League Cup, their first major trophy since 1963, to qualify for next season's Europa League competition, but ended the campaign by being relegated to the Championship after a late season loss of form.
