Share prices surged on the mainland bourses on Monday amid speculation the government will accelerate measures to bolster the economy and cross-border sales of mutual funds will fuel equity inflows.

The rally also saw the CSI 300 Index crossing the 5,000 mark for the first time in seven years .

China Shipbuilding Industry Co and Ningbo Port Co both soared 10 percent to lead gains for industrial companies. [Company Incorporation USA]CITIC Securities Co and Haitong Securities Co surged after the mainland and Hong Kong approved cross-border sales of mutual funds from July 1.

The CSI 300, representing the largest stocks in Shanghai and Shenzhen, jumped 3 percent to 5,099.84. The index rallied 7.2 percent last week after the State Council announced its "Made in China 2025" plan aimed at making selective manufacturing industries more globally competitive. The CSI 300 has advanced 44 percent this year, lagging behind the 136 percent surge in the ChiNext index of small-cap shares.

"The momentum in the market continues to be really strong with no clear indications that the market is about to correct," said Gerry Alfonso, a sales trader at Shenwan Hongyuan Group Co. "It is likely that we will see the Shanghai Composite reaching the 5,000 level as well."

The Shanghai Composite climbed 3.4 percent to 4,813.80, while the ChiNext dropped 1.4 percent. Hong Kong's market was closed on Monday for a public holiday. Trading volumes in the Shanghai Composite were 23 percent higher than the 30-day average.

China outlined plans to support manufacturing in 10 major areas including information technology, robotics, aviation and aerospace equipment, rail transport, new energy vehicles, power equipment, medical equipment and agricultural machinery in the next 10 years, the Xinhua News Agency reported last week, citing a plan issued by the State Council.

A gauge of industrial shares in the CSI 300 rallied 4.7 percent, the most among the 10 groups. AVIC Aviation Engine Corp and AVIC Aircraft Co gained at least 7.6 percent after China International Capital Corp named them, along with China Shipbuilding, as companies that will benefit from the plan.

Large-cap stocks also gained after the mainland and Hong Kong approved cross-border mutual fund sales. The initial quota will be a total 600 billion yuan ($97 billion), [Hong Kong Company Registration Guide]split evenly in each direction, regulators in the mainland and Hong Kong said in a joint statement on Friday.

Cross-border sale of funds "marks further opening up of domestic capital markets and steps up mutual connectivity between both markets", Shenwan Hongyuan Group Co analyst Gui Haoming said.

"The bullish sentiment won't be easily affected by regulations including the clampdown on market manipulation," Gui said.