Chinese mainland stocks rose to a three-week high, extending a weekly gain, as consumer companies rallied and investors bet the government will accelerate reform of State-owned enterprises.

The Shanghai Composite Index added 1.8 percent to 3,642.47 points at the close. The measure climbed 4.2 percent last week, led by property developers, after data showed home prices increased in more cities. Inner Mongolia Yili Industrial Group Co, the nation's biggest dairy producer, and Henan Shuanghui Investment & Development Co, a pork processor, rallied to lead gains among consumer staple groups.

The Shanghai gauge has rebounded 24 percent from an August low after the government took unprecedented measures to prop up equities and speculation grew policymakers will take more measures to bolster the economy. China's power industry plans to bring in more investors in a pilot program of mixed-ownership reform next year, the Economic Information Daily reports, without citing anyone.