BEIJING, June 2 (Xinhua) -- Chinese shares closed 0.75 percent higher on Monday, continuing an upward trend of the last trading day, led by electricity and financial heavyweights.

    The benchmark Shanghai Composite Index, which covers both A and B shares, closed at 3,459.04 points, up 25.69 points, or 0.75 percent from the previous close.

    The Shenzhen Component Index rose 9.01 points, or 0.07 percent, to 12,057.25 points.

    The combined turnover has shrank from 97.12 billion yuan (13.9 billion U.S. dollars) on the last trading day to 91.64 billion yuan on Monday.

    Experts held investor confidence remained weak and predicted the recent jigsaw pattern of the market would continue.

    China State Construction Engineering Corp., the state-owned construction and real estate giant, is scheduled to issue up to 12billion A shares on the domestic stock market to fund big projects and infrastructure investment and to boost working capital.

    The company will find out on Thursday if the A-share issue receives approval from the China Securities Regulatory Commission. The news dampened market sentiment as some investors worried that market liquidity would tighten further.

    The power sector boosted the index. Huadian Power International Corp., one of the country's five largest power companies, surged 9.49 percent to 6.81 yuan per share, while the State Development and Investment Corp. (SDIC) Electric Power jumped 9.98 percent to 10.36 yuan.

    Li Hongyan, a Qilu Securities analyst, attributed the recent gains across the power board to good earning expectations. In addition, there was market hearsay that some power titans were applying for subsidies from the government against the backdrop of the coal price rise.

    Most banking shares rebounded from last week's downward trend. The Bank of China, the country's second largest commercial lender, increased 1.26 percent to 4.82 yuan, with Bank of Communications, the country's fifth-largest bank, gaining 2.38 percent to 9.02 yuan.

    Rising issues outnumbered falling stocks by 551 to 279 in Shanghai and by 424 to 224 in Shenzhen.