Investors at a stock exchange in Nanjing, capital of East China's Jiangsu Province. Photo: VCG

Following a week of steep decline, China's mainland stock markets edged up considerably Monday, with the Shanghai market rising by more than 3 percent, supported by strong economic data. 

When the closing bell rang Monday, the Shanghai Composite Stock Index edged up 3.11 percent or 100.02 points to end at 3,314.15 points. The Shenzhen Component Stock Index rose2.55 percent to 13,448.85 points, and the tech-heavy ChiNext board was up1.31percent to end at 2,697.30 points. 

The rally was led by defense and cement shares. More than 170 shares surged to the trading limit of 10 percent. 

The rise came after a week of steep decline for mainland stocks. In the week ended Friday, the Shanghai Composite Index slumped roughly 5 percent, the Shenzhen market was down 4.07 percent and the ChiNext fell 4.18 percent.

Yang Delong, chief economist at the Shenzhen-based First Seafront Fund Management Co, said market confidence has largely rebounded after Chinese regulators encouraged securities funds to conduct mergers and acquisitions, and permitted insurance companies to expand their investment proportions in domestic securities companies.

Yang also told the Global Times that the A-share market has entered a slow bull cycle, and the rising trend won't be reversed despite temporary fluctuations.