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"We are deeply troubled, shocked and upset about the fact that it is our company's founder who caused this storm," the company said. "We, as well as the public, think juveniles are the future of society, and any behavior that harms them should be punished by the law."
"At 9 p.m. on July 3, Shanghai police issued a briefing on its official Weibo account. From that, it has been confirmed by the police that Wang Zhenhua, the de facto controller of Seazen Holdings, is suspected of molesting a girl," a Chinese state-run news agency reported on Thursday. CNN has been unable to contact a representative for Wang.
The stock of Seazen Holdings plunged 10% on Thursday and Friday each, the maximum daily move allowed on the Shanghai stock exchange.
The crash wiped about $5.4 billion off the value of the three companies combined, according to Refinitiv data.
Global credit ratings agencies warned on Friday that Wang's detention could damage the real estate group's standing with partners, investors, financial institutions and potential customers.
"In our view, the seriousness of the allegation and sudden change in leadership could have severe repercussions for Future Land's reputation and brand name," S&P Global Ratings said in a statement.
Analysts at Nomura and Goldman Sachs slashed their target prices for Future Land stock on Friday, citing risks relating to the change in chairman.
Two girls were brought to Wang Zhenhua in a hotel in Shanghai on June 29, according to Xinmin Evening News, a local newspaper run by 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 comment.
Wang is now worth around $5 billion.
Lily Lee and Yong Xiong in Beijing contributed to this article.