The benchmark Shanghai Composite Index surged 2.35 percent to close at 2,927.18 points while the smaller Shenzhen index jumped 2.05 percent to 10,370.99 points, Xinhau reported.
The ChiNext Index, the NASDAQ-style board of growth enterprises, climbed up 1.56 percent to close at 2,245.56 points.
Total turnover on the two bourses increased to 602.1 billion yuan ($92.4 billion), compared with 481.38 billion yuan on Friday.
Altogether more than 2,400 stocks gained during the day's trading, with 87 stocks up by the daily limit of 10 percent.
The real estate sector led the charge, as the Ministry of Finance on Friday announced plans to cut home purchase taxes, signalling China's resolve to destock the property inventory and boost sales.
Poly Real Estate Group Co., China's second-largest property developer, gained 3.31 percent to finish at 9.35 yuan.
Financial heavyweights were also among the best performers on Monday, with CITIC Securities, the largest brokerage in China, surging 3.18 percent at 15.58 yuan at closing.
Shares remained firmly positive throughout the intraday trading, climbing beyond the 2,900-point mark before midday and nudging up to higher levels during the afternoon session.
The rosy start to the week is accompanied with the heightened expectations for the new head of the China Securities Regulatory Commission (CSRC), who was appointed on Saturday.
Liu Shiyu, a veteran banker, will head the CSRC, according to decisions made by the Communist Party of China Central Committee and the State Council.
Xiao Gang, former head of the CSRC, was removed from the post.