Chinese shares closed the first trading day of the week with gains as sentiment was upbeat over the continued expansion of the country's manufacturing sector.

The Shanghai Composite Index, the main gauge of Chinese stocks, added 1.1%, or 37.53 points, to close Monday's trade at 3,363.98. The Shenzhen Component Index rose 1.4%, or 144.83 points, to 10,756.55.

China's purchasing manager's index climbed 50.3 in November from 50.1 in the prior month, showing a continued increase in production.

A private reading agreed that China's manufacturing activity is in expansionary territory. The Caixin China General Manufacturing purchasing managers' index rose to 51.5 points in the same month from 50.3 points in October.

The rise in the manufacturing industry overshadowed the stalled growth in the services sector. The country's non-manufacturing purchasing manager's index fell to 50 in November from 50.2 in October.

In corporate news, BYD's (SHE:002594) Shenzhen shares closed 2.8% higher after being cleared by Thailand's consumer watchdog over its discount practices.

Meanwhile, Hangzhou Anysoft Information Technology (SHE:300571) closed 3.7% higher after signing a deal with ZTE for the Yunnan Unicom smart computing project.