Chinese investors' "fever" for Shanghai free trade zone concept stocks helped push mainland share markets higher on Monday.

Shanghai-based companies closely related to foreign trade have performed strongly since the Ministry of Commerce announced last Thursday that the State Council, the country's cabinet[Hong Kong Company Registration Guide], had approved the establishment of a pilot FTZ in Shanghai.

"The Shanghai free trade zone project will provide strong impetus to the growth of foreign trade and logistics in Shanghai.

"It will also serve as a strong example nationwide in terms of policy reforms in finance, tax, trade and government management," said Guo Yiming, a senior investment consultant at Shaanxi Jufeng Investment Information Co Ltd.

Investors stampeded into FTZ concept stocks on Monday, many of which were up by the daily limit of 10 percent before the morning session had ended.

Textile company Sinotex Investment & Development Co Ltd surged 10 percent to 5.81 yuan (95 US cents) in the morning session.

Shanghai Jinqiao Export Processing Zone Development Co Ltd and Shanghai Lujiazui Finance and Trade Zone Development Co Ltd also surged by the daily limit in the morning session.

Shares of logistics companies rallied too. CTS International Logistics Corp Ltd jumped 10.03 percent to 8.56 yuan and Shanghai Material Trading Co Ltd was up 9.99 percent, closing [Businesses Registration]at 9.91 yuan per share.

The shares of Shanghai Material Trading, which is closely related to the Shanghai FTZ project, have risen more than 80 percent since the project was approved. CTS has seen its price jump 60 percent.

"The free trade zone project will, of course, help increase international freight volume in Shanghai. This is a direct feel-good factor prompting the rise," said Wang Jianhui, chief economist at Southwest Securities Co Ltd.

The buying "frenzy" surrounding the concept stocks helped move market sentiment and pushed the benchmark Shanghai Composite Index up 1.9 percent to close at 2,096.74.

Volume didn't budge much, though, rising to 99.1 billion yuan from 94.5 billion yuan the previous trading day.

"Of course, the free trade zone project has helped the market's rally. But the various concept stocks don't make up a large proportion of listed stocks. Thus, the impact is limited.

"Meanwhile, some listed companies based in Shanghai, such as travel agency Shanghai Jinjiang Travel Co Ltd, saw their prices gain on Monday as a combined result of the free trade zone project and the coming three-day Mid-Autumn holiday," said Wang.

Optimism over the official Purchasing Managers' Index, set for release on Sept 1, also contributed to the rally on Monday. It is expected that the economy will pick up momentum soon, Wang said.

"Another major reason is a technical rebound led by securities companies. The Shanghai Stock Exchange has expressed willingness to further study the feasibility of the T+0 trading system, [Hong Kong Company Formation & Registration]which is another feel-good factor," he added.

Under T+0 trading, stock transactions would settle the same day, improving brokers' financial position.

Stock prices of seven brokering firms were up more than 5 percent. Haitong Securities Co Ltd was up 8.1 percent to 11.35 yuan.