The blue-chip CSI300 index rose 0.7 percent to 3,095.31 points, while the Shanghai Composite Index gained 0.8 percent to 2,850.86 points.
The market had dropped for four weeks in a row amid increasing concerns that a recent pick-up in China's economic activity may be fizzling out.
Confidence was also hit last week by media reports saying China would suspend additional fundraising and M&As in four industries, including online finance, gaming, film and virtual reality.
But most stocks in those sectors rose on Monday after the securities regulator denied the report late on Friday and said it would continue to support M&As by qualified listed companies, with no change to existing policies.
Although data released over the weekend showed that China's investment, factory output and retail sales all grew more slowly than expected in April, traders said much of the impact had already been priced in.
All main sectors rose, with IT shares leading the rise.