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Jing Ulrich, MD & Vice Chairman of Asia Pacific for J.P. Morgan Chase, speaks during CNBC’s East Tech West in Nansha, Guangzhou.
On top of those factors are concerns about trade tensions between China and the U.S. The two countries have announced tit-for-tat tariffs on billions of dollars’ worth of goods from one another as the White House seeks to reduce the U.S. trade deficit with China and change how foreign companies are treated by Beijing.
Ulrich said she hopes U.S. President Donald Trump and Chinese President Xi Jinping will lay out the framework for negotiations when they meet this weekend at the G-20 summit.
“Some sort of temporary truce will be very helpful in the currently very volatile capital market environment,” Ulrich said.
The S&P 500 closed last week in correction territory, or more than 10 percent from its all-time high. The index recovered slightly Monday, but remains little changed for the year. The Shanghai composite is among the worst-performing stock indexes in the world this year, and fell into a bear market, or more than 20 percent from a recent high, in June.
“Capital markets have already taken into account slower growth to come in 2019,” Ulrich said. “But in the medium to long term, the Chinese technology sector will still make advancements despite the trade tensions.”
