Billionaire Pan's Goldin Properties Extends Decline on MSCI Move

  • MSCI to drop company with small free float from MSCI indexes
  • Goldin shares have gyrated wildly, denting Pan's net wealth

Shares in billionaire Pan Sutong’s Goldin Properties Holdings Ltd. fell as much as 9.6 percent after MSCI Inc. said it was removing the company from its equity indexes, extending a six-day decline that has shaved almost 40 percent from the stock price.

The company has been the subject of a series of notices from the Hong Kong securities regulator flagging its high shareholder concentration, according to a statement on MSCI’s website dated Monday. The change starts from the February quarterly review. It will also affect companies including casino developer Imperial Pacific International Holdings Ltd. and Wanda Hotel Development Co.

Trading in 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 53 percent this year, compared with a 15 percent decline in the Hang Seng Property Index.

Pan, who also controls sister company Goldin Financial Holdings Ltd., has lost 70 percent of his net worth since the beginning of the year, which now stands at $2.9 billion, according to the Bloomberg Billionaires Index. Though market gyrations have seen his fortune swing by billions of dollars in a day, he reiterated in an interview last year that he doesn’t care about share price fluctuations. Goldin Financial has lost 53 percent so far this year.

In December, Pan, who owns about 64 percent of the developer, told the stock exchange he had decided not to make a general offer to take Goldin Properties private, after first notifying it of his intentions in March.

The stocks MSCI will remove won’t be eligible to get back into gauges until they make public disclosures confirming their free float has returned to an acceptable level, the index compiler said.

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