Chinese equities closed higher on Monday with the key Shanghai stock index up, led by banking shares and iron and steel sectors.

The benchmark Shanghai Composite Index climbed 1.54 points, or 40.86 percent to closed at 2,696.25. The Shenzhen Component Index rose 188.99 points, or 1.65 percent, to end at 11,656.08.

Combined turnover expanded to 300.54 billion yuan (44.3 billion U.S. dollars) from 289.03 billion yuan on the previous trading day.

Gainers outnumbered losers by 523 to 337 in Shanghai while losers outnumbered gainers by 618 to 415 in Shenzhen.