BEIJING -- Chinese shares closed higher on Monday, with the benchmark Shanghai Composite Index up 0.71 percent to 3,993.67 points.

The Shenzhen Component Index gained 0.95 percent to close at 13,573.90. The ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, shed 0.29 percent to end at 2,666.29.

Winners outnumbered losers by 695 to 234 in Shanghai, and by 829 to 520 in Shenzhen on Monday. The total turnover of the two bourses dipped to 1.19 trillion yuan ($185.93 billion) from Friday's 1.22 trillion yuan.

Stocks related to agriculture, real estate, nonferrous metal, sports and the defence industry led the gains. China Minmetals Rare Earth Co Ltd surged by the daily limit of 10 percent to end at 26.13 yuan per share. China Sports Industry Group Co Ltd also soared 10 percent to close at 29.33 yuan.

China had one of the world's best-performing stock markets earlier this year, with the benchmark Shanghai Composite Index rising more than 150 percent in 12 months, partly fueled by margin trading.

However, the index lost more than 30 percent in less than a month from a June 12 peak, as margin traders unwound positions and investors cashed out.

The market has shown signs of recovery on the heels of rescue measures, including major brokerages putting their own capital on exchange-traded funds tracking the performance of blue chip stocks.

The securities watchdog said on Friday that the national margin trading service provider, China Securities Finance Corporation Ltd (CSF), whose liquidity injection has been crucial in stabilizing the country's stock market, will hold its shares and stabilize the market when it fluctuates dramatically.

On July 9, the watchdog announced that CSF will provide liquidity to buy public offerings of funds and inject liquidity to fund companies, in a move intended to increase investor confidence.