Fallout deepens over sex crime

Business | Tereza Cai and Bloomberg 5 Jul 2019

Future Land Development (1030) extended its plunge by 10.57 percent to HK$7.19 while Xinchengyue (1755) slumped 13.11 percent to HK$5.70 after Future Land said chairman Wang Zhenhua has been detained, forced to resign and would be replaced by his son.

Beijing News reported citing Future Land Development's public relation chief said it was fake news that Jiangsu China Securities Regulatory Commission was interviewing the company's board secretary on its information disclosures

The PR head, who was not named, said the talk with Jiangsu CSRC was scheduled before the detention on Wednesday, but had been rescheduled to yesterday as the board secretary had urgent matters to attend to.

China's eighth-largest property developer, Future Land Development said late Wednesday that the Putuo branch of the Shanghai public security bureau had informed it that Wang had been detained for "personal reasons" and that the firm has removed him from his position with immediate effect, sending its shares into a tailspin.

Wang, who faces prosecution over a suspected sex crime involving a nine-year-old girl, controls about 70 percent of Shanghai-based Future Land. His son, 31-year-old non-executive director Wang Xiaosong, has been appointed chairman with immediate effect.

The detention is unrelated to the company and business operations were continuing as normal, Future Land said.

Wang was detained on Saturday, but the firm only disclosed the information on Wednesday. There are several large transactions of the company's stock between June 29 and July 3 before the disclosure.

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