The head of the Chinese temple known as the birthplace of kung fu will be disrobed for "extremely bad behaviour", Beijing's top Buddhist authority said on Monday, after allegations of embezzlement saw him placed under investigation.

The Shaolin Temple said on Sunday that Abbot Shi Yongxin, known as the "CEO monk" for establishing dozens of companies abroad, was suspected of embezzling project funds and temple assets.

It said Shi had "seriously violated Buddhist precepts", including by allegedly engaging in improper relationships with multiple women.

"Multiple departments" are conducting a joint investigation, it said in a statement on WeChat.

The Buddhist Association of China, overseen by the Communist Party, said on Monday it would cancel Shi's certificate of ordination.

"Shi Yongxin's actions are of an extremely bad nature, seriously undermining the reputation of the Buddhist community, hurting the image of monks," the association said in an online statement.

Shi had previously been accused by former monks of embezzling money from a temple-run company, maintaining a fleet of luxury cars and fathering children with multiple women.

A hashtag related to the temple scandal had been viewed more than 560 million times on social media platform Weibo as of Monday morning.

Shi faced similar allegations in 2015 which the temple called "vicious libel".

Shi, 59, took office as abbot in 1999 and in the following decades expanded Shaolin studies and cultural knowledge overseas.

He helped the temple establish dozens of companies – but received backlash for commercialising Buddhism.

The temple, established in AD 495, is known as the birthplace of Zen Buddhism and Chinese kung fu.

Shi was first elected vice-chairman of the Buddhist Association of China in 2002 and has served as a representative to the National People's Congress. (AFP)