China stocks jumped over 2 per cent on Monday to a four-week high, led by property and resources shares, as investors welcomed Beijing’s decision to replace the top securities regulator and on signs the government was stepping up its economic stimulus efforts.

Gains were broad-based, and helped lift the CSI300 index of the largest listed companies in Shanghai and Shenzhen up 2.2 per cent to close at 3,118.87, while the Shanghai Composite Index gained 2.4 per cent to 2,927.18 points.

China had said over the week-end that it had removed Xiao Gang from his post as chairman of the China Securities Regulatory Commission (CSRC), replacing him with Liu Shiyu, chairman of Agricultural Bank of China Ltd (AgBank) .

The decision, seen as a move to restore market confidence, was cheered from China's retail investors, many of whom were burnt by the recent stock market rout.

"If a casino has a new boss and gets renovated, it's certainly something worth celebrating," said Zhu Haifeng, 31.

"I've long cast doubt about the ability of Xiao Gang. The fact that CSRC reacted to the crisis in such a passive manner showed he is a mediocre official who lacks vision."

Buying was also fuelled by hopes that China will step up stimulus to solve overcapacity problems, which the European Union Chamber of Commerce in China said have worsened since the 2008/09 global financial crisis.

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