Wang Zhenhua has already been replaced as chairman of Seazen Holdings
The chairman of Hong Kong-listed Future Land and mainland developer Seazen Holdings has been detained by police in Shanghai for investigation of crimes related to charges of sexually abusing a nine-year-old girl, according to a statement late yesterday by the Putuo district police department.
Wang Zhenhua has already been removed as chairman of the Hong Kong-listed developer, according to a statement to the Hong Kong stock exchange yesterday by Future Land.
Girl Said to Be Delivered to Billionaire Developer After Trip to Disneyland
57-year-old Wang surrendered to the police on 2 July after the authorities began investigating a complaint from the girl’s mother that a woman surnamed Zhou had delivered the nine-year-old to Wang at a five star hotel in Shanghai, with the girl alleged to have suffered injuries to her genitals while with Wang.
Zhou, who had taken the nine-year-old and a second girl from Jiangsu for a trip to Shanghai Disneyland, was allegedly paid RMB 10,000 ($1,453) by Wang after the corporate chieftain returned the girl, according to an account in Shanghai’s Xinmin Evening News.
Zhou and Wang were investigated after the girl made a call to her mother explaining the incident, with the mother then contacting the Shanghai police.
Wang Replaced by Son as Developer’s Chairman
Seazen Holdings has already announced that, following Wang Zhenhua’s removal as executive chairman, his son Wang Xiaosong, has been selected as the new executive chairman.
In its statement to the Hong Kong exchange announcing Wang Xiaosong’s appointment, the Changzhou-based company indicated that Wang Zhenhua was currently in police custody for personal reasons.
In trading late yesterday, Future Land’s Hong Kong-listed shares were down by 24 percent, to close at HK$8.04 per share, with the company’s value falling by HK$1.4 billion ($180 million). Shares in Seazen’s Hong Kong-listed property management affiliate, Xinchengyue (01755.HK), fell just under 23.72 percent to close at HK$ 5.56 per share. The news was announced after trading had already concluded on the Shanghai exchange.
Future Land ranked eighth among mainland China’s largest developers in 2018 after recording RMB 220 billion in contracted sales.
Editor’s Note: an earlier version of this story identified Seazen Holdings and Future Land as a single entity, when they are in fact separate companies that share management and shareholding. Mingtiandi regrets the misunderstanding.
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