By Ross Kerber
BOSTON, Dec 16 (Reuters) - Investors don't expect the new
administration of U.S. President-elect Joe Biden to act quickly
to change new rules that bar investment in some Chinese
companies, an executive for index provider MSCI Inc
told Reuters on Wednesday.
During a consultation with more than 100 clients on how to
reshape its indexes around the restrictions, MSCI found the
conventional wisdom to be that altering the rules "is not the
highest priority for the Biden administration," Sebastien
Lieblich, the Paris-based head of index research for MSCI, said
in an interview.
MSCI Inc on Tuesday moved to delete the securities of seven
Chinese firms from some of its global indexes after the outgoing
Trump administration banned owning their shares. The move
followed similar steps by rivals including FTSE Russell
and Nasdaq Inc..
The seven were among 35 companies listed by the U.S.
Department of Defense as owned or controlled by the Chinese
military, subjecting them to the new restrictions. China has
condemned the moves, saying the effort runs counter to
principles of market competition.
A spokesperson for Biden's transition team declined to
comment on Lieblich's remarks.
MSCI also had said it would launch versions of some indexes
that retain the barred Chinese company securities. Lieblich said
"a small number" of MSCI clients had asked for them but declined
to be more specific.
Lieblich said MSCI decided not to delete subsidiaries or
affiliates of some of the restricted Chinese companies, but
could take further action if Washington gives more details about
specific listings it wants barred.
"Whether the spirit of the order was to have everything
excluded, that's an open question," Lieblich said.
(Reporting by Ross Kerber in Boston; Additional reporting
Alexandra Alper in Washington;
Editing by Sonya Hepinstall)