"We are deeply disturbed, shocked and annoyed that it is the founder of our company who caused this storm," the company said. "We and the public believe that adolescents are the future of society, and any behavior that harms them should be punished by law."
"At 9:00 pm on July 3, the Shanghai police released a statement about their official Weibo account, which shows that the police have confirmed that Wang Zhenhua, the de facto controller of Seazen Holdings, on suspicion of "harassing a girl," reported a state-run Chinese news agency on Thursday, said CNN was unable to contact a Wang representative.
Seazen Holdings shares fell 10% each Thursday and Friday, reflecting the maximum daily movement allowed on the Shanghai Stock Exchange.
According to Refinitive, the crash reduced the combined value of the three companies by $ 5.4 billion.
Global rating agencies warned on Friday that Wang's detention could affect the real estate group's reputation with partners, investors and financial institutions and potential clients.
"From our point of view, the seriousness of the allegation and the sudden change of leadership could have serious repercussions on Future Land's reputation and brand name," S & P Global Ratings said.
Nomura and Goldman Sachs analysts lowered their futures price targets on Friday, pointing to risks associated with the chairman's move.
According to Xinmin Evening News, a local newspaper, on June 29, two girls were brought to Wang Zhenhua's hotel in Shanghai operated by the state-owned Shanghai United Media Group. The mother of one of them reported the alleged crime to the police, the newspaper reported.
Future Land, Seazen and S-Enjoy have not responded to repeated requests for additional comments.
Wang now has a value of about $ 5 billion.
Lily Lee and Yong Xiong from Beijing contributed to this article.