MSCI Inc. plans to remove some of Hong Kong’s most closely held companies, including Goldin Properties Holdings Ltd. and Imperial Pacific International Holdings Ltd., from its indexes.
The index compiler will exclude stocks that have been the subject of a notice from the Hong Kong securities regulator flagging their high shareholder concentration, according to a statement on MSCI’s website dated Monday. The change starts from the February quarterly review. It will affect companies including casino developer Imperial Pacific International and billionaire Pan Sutong’s Goldin Properties.
Goldin Properties and Goldin Financial Holdings Ltd. plunged more than 40 percent in one session in May. A day earlier, Hanergy Thin Film Power Group Ltd., also controlled by a billionaire owner, tumbled 47 percent in 24 minutes before trading in the Chinese solar company’s shares was suspended. The stocks had surged at least 500 percent in the 12 months before the rout. The two Goldin companies now trade at least 78 percent below last year’s peaks, while Hanergy remains suspended amid a regulatory probe.
Pan and a group of 13 shareholders owned more than 95 percent of Goldin Properties at the end of May, the Securities and Futures Commission said in June. Cui Li Jie and 18 other shareholders owned more than 92 percent of Imperial Pacific in mid-2014, according to the notice from the regulator.
The stocks won’t be eligible to get back into gauges until they make public disclosures confirming their free float has returned to an acceptable level, MSCI said.