(Yicai Global) July 4 -- Chinese real estate company Seazen Holdings picked the son of Chairman Wang Zhenhua to take up his father's duties after the billionaire property developer was caught up in a police investigation over alleged child molestation.
Seazen and its unit Future Land Development Holdings tapped Wang Xiaosong as the new executive chairman following his father's arrest for personal reasons, the Shanghai-based companies said yesterday. Companywide operations continue as normal, they added.
Authorities detained Wang Zhenhua, Seazen's controlling shareholder, due to an ongoing investigation into molestation of a nine-year-old girl, Shanghai's Putuo district police department said in a statement yesterday.
Shares of Seazen [SHA:601155] fell by the daily maximum of 10 percent on the Shanghai Stock Exchange to end at CNY38.42 (USD5.59) each. Future Land's [HKG:1030] closed 10.6 percent lower at HKD7.19 (92 US cents). Another subsidiary, S-Enjoy Service Group [HKG:1755], lost 13 percent to HKD5.70.
Wang Zhenhua surrendered to police on July 2 after the authorities began looking into a complaint the victim's mother filed involving injuries that appeared after the child's trip from Jiangsu province to Shanghai Disneyland with another girl and an adult companion, Shanghai's Xinmin Evening News reported.
The adult allegedly received CNY10,000 (USD1,455) from Wang after taking the girl to his hotel.
Editor: Emmi Laine