Chinese equities rose on Monday as the Chinese government said over the weekend that it would allow greater flexibility in the yuan's exchange rate.

The benchmark Shanghai Composite Index gained 2.9 percent to close at 2,586.21.

The Shenzhen Component Index rose 3.44 percent to end at 10,309.61.

Total turnover expanded to 150.77 billion yuan (22.17 billion U.S. dollars) from 145.93 billion yuan on the previous trading day.

Gainers outnumbered losers by 839 to 44 in Shanghai and 928 to 44 in Shenzhen.