BEIJING, April 27 -- Chinese shares closed higher on Monday due to the stellar performance of heavyweights, especially those involved in the reform of state-owned enterprises (SOEs).

The benchmark Shanghai Composite Index went up 3.04 percent, or 133.71 points, to finish at 4,527.4 points, marking a more than seven-year high, while the smaller Shenzhen Component Index gained 1.44 percent, or 210.73 points, to close at 14,809.42 points.

Combined turnover on the two bourses amounted to 1.64 trillion yuan (267.89 billion U.S. dollars), up from 1.59 trillion yuan registered on the previous trading day.

A total of 122 companies soared by the 10-percent daily limit.

Analysts said the rise was attributable to the government's new resolution to step up SOE reform, which will encourage smaller companies to merge into industrial conglomerates to rival their international peers.

A source close to the reform program told Xinhua that authorities plan to reorganize the current 112 centrally administered SOEs into 40 more competitive companies.

Subsidiaries of SOEs involved in the mergers and acquisitions program surged, lending a strong boost to the Shanghai index. China Petroleum and Chemical Corporation, PetroChina Company and China Railway Group jumped by around 10 percent.

The oil, military, power, airport and bank sectors rose substantially.

However, small caps lagged behind the trend. The ChiNext Index, which tracks China's Nasdaq-style board of growth enterprises, only rose 0.47 percent to end at 2,747.5 points.

Companies related to construction in Tibet also climbed high after an 8.1-magnitude earthquake struck neighboring Nepal and left some areas in the region in need of rebuilding and repairs.

Chinese-listed firms began posting their performance for the first quarter (Q1). Combined profits of 1,307 listed companies that had released Q1 reports as of Sunday were 5.85 percent higher than in the same period last year, data showed.