The chairman of Chinese real-estate developer Seazen Holdings has been suspected of being involved in sexually abusing a minor, according to local media in Shanghai.

Shanghai Police announced on Wednesday that Wang, 57, was detained on Tuesday on charges of molesting a nine-year-old girl. Wang is allegedly the founder of Future Land Development Holdings.

Police said they are investigating the allegations.

Following the announcement, Shanghai-listed Seazen Holdings declared that Wang Xiaosong will take over as new chairman of the company.

Shares in the Hong Kong-listed firm Future Land Development Holdings fell by 23.86 percent to HK$8.04 ($1.03) on Wednesday.

Sex abuse criminals face prison terms of up to five years, and those found guilty of abusing children face more severe punishments, according to China's Criminal Law.

Wang Zhengzhi, senior partner at Globe-Law, told the Global Times on Wednesday that crimes against children should be severely punished.

According to Tianyancha.com, a business inquiry service provider, the man detained by police owns 194 companies.

Future Land Holding's major business is developing real estate. Its sales reached 221 billion yuan ($32.13 billion) in 2018, ranking 8th in China.

The man had previously been under a two-week long investigation by the local discipline inspection commission over personal issues, said a note the company issued in 2016, according to Lengjing, an investigative financial news program run by Tencent Holdings.