Major Chinese stock indices rallied on Monday led by outstanding performance by start-ups.

The benchmark Shanghai Composite Index went up 1.23 percent to close at 3,329.57 points. The Shenzhen Component Index closed 2.18 percent higher at 10,895.56 points.

The ChiNext Index, which tracks China's NASDAQ-style board of growth enterprises, gained 3.61 percent to close at 1,729.15 points Monday.

Combined turnover on the two bourses expanded to 467.2 billion yuan (74 billion U.S. dollars) from 332.6 billion yuan the previous trading day.

Xiamen Savings Environmental Co. and Guo Chuang Software Co. both surged beyond the daily limit of 10 percent to close at 5.8 yuan and 20.21 yuan, respectively.

China's top legislature plans to prolong a mandate allowing the State Council to make adjustments for reforms that will change the stock listing system from approval-based to registration-based for another two years to Feb. 29, 2020.

The draft decision was submitted to a session of the Standing Committee of the National People's Congress (NPC), the top legislature, for review on Friday.

The proposed extension aims to maintain the consistency of the policy and avoid doubt in the market, while gaining practical experience for securities law amendment, said Liu Shiyu, chairman of China Securities Regulatory Commission (CSRC), the top securities regulator.