The Fosun supremo is also moving to Wolverhampton and will be based full-time at the club, taking a more hands-on role in the day-to-day running.
Managing director Laurie Dalrymple, meanwhile, has stepped down from the board. However, it is understood his role will remain the same.
The board is now made up of four members – Shi, fellow Fosun employee Sky Sun and long-time Wolves supporters John Gough and John Bowater.
Shi's previous title was main director although he stated last July when Fosun bought the club that he would like to be chairman.
Dalrymple had been named on the board last August in the wake of Jez Moxey and Steve Morgan leaving the club.
In a statement Shi said: “Since Fosun became owners of the club, I have travelled over from China on several occasions, and it has always been a strong intention that I would relocate when the time was right.
“It feels like the natural thing to do now, to move over to Wolverhampton, and to be fully engaged with the club on a day-to-day basis.
“Previously there were a lot of phone calls, e-mails and WhatsApp communication, but now I will be able to enjoy more face-to-face contact with Laurie, Kevin and Nuno, as he settles into his role as head coach.
“I think this will help us to work together even closer, and make our leadership team even stronger.
“It is obviously a proud moment for me to become the chairman of such a great club as Wolves.
“Despite the season having its highs and lows, I have enjoyed every minute of the challenge so far, and I believe we are well placed to make sustained and consistent progress over the next 12 months.
“I just want to repeat my thanks to supporters for their welcome and their backing over the last year, and I look forward to meeting more of them when I move over in July.”