China's stock markets traded in negative territory, led by tech names

China's stock markets traded in negative territory on Thursday, with technology shares under great pressure after the arrest of Huawei's chief financial officer.

The benchmark Shanghai Composite Index opened lower and shed 1.68 percent or 44.63 points to finish the day at 2,605.18, dragged down by communications equipment makers and 5G-theme related companies.

The negative sentiment rippled through the smaller Shenzhen Component Index and the Nasdaq-style ChiNext enterprise board, which finished the day down by 2.44 percent and 2.61 percent  to stand at 7735.05 and 1345.76.

Shares in Shenzhen Sunway Communication Co Ltd, a company devoted to the manufacture, sale and marketing of mobile terminal antennas and related modules, plunged by the daily maximum limit of 10 percent to close at 24.45 yuan per share.

Essences Securities said that the A-share market is in the  late stages of a bear market and structural recovery is expected given improved liquidity and the country’s favorable industrial policies.