(Yicai Global) July 5 -- Thirty-three brokers' funds have cut their stock price targets for Seazen Holdings, one by as much as 40 percent, after the real estate developer's stock tumbled following the arrest of its former chairman in a child molestation case, The Paper reported.
HSBC Jintrust Fund slashed its target for Shanghai-based Seazen [SHA:601155] by the most, cutting it to CNY25.21 (USD3.70) a share from CNY42.69. The firm's shares plunged by the daily trading limit of 10 percent yesterday and today to end the week at CNY34.58.
Although not an industry leader in China, Seazen held favor among many investors. As of the end of the first quarter, 44 fund companies and six asset management firms held its stock.
Seazen said on June 30 that Chairman Wang Zhenhua was under arrest. This followed a report to police that day of a nine-year old girl being raped. A man was arrested and is currently under investigation. Several sources have confirmed that Wang is the suspect. The firm has since appointed his son, Wang Xiaosong, as the new executive chairman.