Chinese equities closed higher at midday Monday, extending sharp gains in July during the first trading day for August.

The benchmark Shanghai Composite Index rose 30.52 points, or 1.16 percent to finish the morning session at 2,668.03 after an almost flat opening at 2,635.81. The Shanghai index surged about 10 percent in July.

The Shenzhen Component Index surged 2.06 percent to cross the 11,000 mark to end at 11,008.04 after it added 0.03 percent to open at 10,789.07.