Chinese stock markets closed higher Monday as major blue chips Yangtze Hydroelectric resumed trading following revolutionary reform to make non-tradable State shares floatable.

The benchmark Composite Stock Index of the Shanghai Stock Exchange, which covers yuan-denominated A shares and foreign-currency B shares, closed at 1,187.01 points, up 19.09 points, or 1.63 percent higher from the previous close.

The Component Stock Index on the Shenzhen Stock Exchange closed at 3,119.15 points, up 53.42 points, or 1.68 percent higher.

Total volumes of shares traded on the markets stood at 24.6 billion yuan (3 billion US dollars).

Long Yun, an analyst with web-based portal Hexun.com, said the confidence of investors is still in the process of rebounding as more capital is entering the markets.

That indicated the strong upward trend of the markets remain unchanged despite downward fluctuation of the markets on Friday.

The Shanghai Stock Exchange dropped to 1,161.92 from previous close of 1,183.58 points on Friday, down 1.32 percent from the previous close.

Major blue chips Sinopec, China Unicom, the country's telecommunication giant dropped by 2.6 percent and 3.05 percent, respectively after their gains in the past five consecutive trading days along with bank-related shares.

The blue chips Sinopec, China Unicom and Pudong Development Bank climbed slightly Monday, which analysts said helped stabilize the market as it boost confidence of investors.

Experts say the markets are expected to go up in a stable way later this week.

Source: Xinhua