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Chinese stocks surged to a record closing high for the sixth straight session Monday as banks rebounded after falling last week following a hike in reserve requirements. The benchmark Shanghai Composite Index jumped 2.3 percent to a record 3,398.95. The Shenzhen Composite Index rose 2.1 percent to 907.82, also a record close.

The state-run Securities Times reported Monday that the securities regulator will soon issue a notice detailing how funds can invest in stock index futures.

"Expectations for trading the stock index soon have promoted investors to buy large caps, such as financial stocks, for arbitrage," said Liu Yisong, an analyst at Galaxy Securities. Banks rose Monday as the impact of the central bank's latest hike in the reserve requirement ratio faded.

China Merchants Bank rose 1 percent to 17.42 yuan and Shanghai Pudong Development Bank gained 1.2 percent to 28.60 yuan. "Friday's decline of banks created an opportunity for bargain-hunting, and the potential for bank shares is great given the vast retail banking market," says Zhou Lin, an analyst at Huatai Securities.

Other blue chips like steel and port companies also jumped Monday.

Shanghai Port Group, China's largest port operator by throughput, surged 10 percent daily limit to 11.06 yuan. Shanghai Baoshan Iron & Steel, the country's biggest steelmaker by output, rose 3.7 percent to 10.55 yuan.

In currency dealings, the U.S. dollar was at 7.7286 at 0745 on the over-the-counter market, up from Friday's close of 7.7213. The dollar's gains Friday against other major currencies helped push the greenback higher, traders said.

Trading was cautious amid the launch of a new electronic trading platform, as dealers tested trades. The China Foreign Exchange Trade System was tested for trading between foreign currencies last month before its introduction Monday for yuan trading against other currencies.