• Companies’ high shareholder concentration cited for exclusion
  • Hang Seng indexes will exclude companies as of June 30

Goldin Financial Holdings Ltd. and Goldin Properties Holdings Ltd., two companies controlled by Pan Sutong, will be dropped from the Hang Seng family of indexes as of June 30 because of their high shareholding concentration that has contributed to wide swings in the stocks.

The two companies have been the subject of a series of notices from Hong Kong’s securities regulator flagging the issue. Pan and entities controlled by him own about 64 percent of Goldin Properties’ shares and almost 68 percent of Goldin Financial’s stock, according to data compiled by Bloomberg.

The Hang Seng family of indexes in a June 17 statement said it is excluding 13 companies following a study on the eligibility of companies with a high concentration of shareholders. Goldin Financial was the only large-cap company on the list.

Goldin Financial shares rose 2.9 percent to HK$5.26 at 10:22 a.m. in Hong Kong, while Goldin Properties advanced 0.6 percent to HK3.25.

MSCI Inc. in February dropped Goldin Properties from its equity indexes, citing price fluctuations stemming from the fact that shares are held by a limited number of shareholders. Goldin Properties’ shares have seen enormous daily swings in the past 12 months. They rose as much as 65 percent on Dec. 24 after the company announced it was selling a stake in its sole development property, in Tianjin, for $2.8 billion. They are down 64 percent this year, compared with a 5.3 percent decline in the Hang Seng Property Index.

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