China's stock market rose by the most in seven weeks on Monday on promises of financial reform.

The Shanghai Composite Index made the biggest advance since March 21, surging by 2.08 percent to close at 2052.87 after the State Council promised late on Friday to allow local governments to issue bonds and to streamline the approval process for IPOs, or initial public offerings.

The Shenzhen Component Index gained by 2.17 percent, or 155.7 points, closing at 7,318.14. Combined turnover was 176.1 billion yuan ($28.58 billion).