Chinese shares closed higher for the sixth straight trading day, led by a rise in banking shares.

The benchmark Shanghai Composite Index went up 0.44 percent to close at 3,447.84 points while the Shenzhen Component Index closed 0.43 percent higher at 11,695 points.

Combined turnover on the two bourses rose to 596.5 billion yuan (89.9 billion U.S. dollars) from 567.9 billion yuan on Friday.

The banking sector was among the biggest winners, with small-cap banks leading the gains. Jiangsu Wujiang Rural Commercial Bank, a recently listed company, saw its shares up by the daily limit of 10 percent.

The Industrial and Commercial Bank of China, the country's largest lender by market value, saw its shares up 2.41 percent.

The strong performance of the sector was boosted by announcement last Friday that China would further open its financial markets to foreign investments.

Foreign businesses will be allowed to own up to 51 percent of shares in joint ventures in securities, funds or futures, Vice Finance Minister Zhu Guangyao told a press conference. The cap will be phased out over three years.

Restrictions on investment in Chinese banks and financial asset management companies will be removed, according to Zhu.

The ChiNext Index, China's NASDAQ-style board of growth enterprises, gained 0.31 percent to close at 1,906.44 points.