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MSCI to delete closely held HK stocks

Hong Kong central 230px
By Jonathan Breen
02 Feb 2016

US-based index provider MSCI will exclude Hong Kong listed securities with a high ownership concentration from its Global Investable Market Indexes (GIMI), it said in a statement on Monday.

The index compiler plans to remove stocks for which the Hong Kong Securities and Futures Commission has issued high shareholding concentration notices, as of its February 2016 Quarterly Index Review.

The stocks affected include Goldin Properties Holdings, majority owned by Chinese tycoon Pan Sutong, and Imperial Pacific International Holdings, primarily owned by Ji Xiaobo and his mother Cui Li Jie.

In total, MSCI is set to delete 18 companies: two from its MSCI China Index, 12 from its MSCI China Small Cap Index and the rest from its MSCI Hong Kong Small Cap Index.

The companies will not be eligible to get back into the indexes until they make public disclosures confirming their free float is at an acceptable level and will only be considered for re-inclusion 12 months after such disclosures, according to the statement.

By Jonathan Breen
02 Feb 2016