SHANGHAI: Chinese shares clawed back lost ground on Monday after data showed that China's economic recovery is continuing to build momentum, but heightened Sino-US tensions kept gains in check.

At the close, the Shanghai Composite index was up 0.26% at 3,205.23 and the blue-chip CSI300 index was up 0.51%.

Industrial firms' profits rose for a second straight month in June and at the fastest pace in more than a year, adding to signs that an economic recovery from the coronavirus crisis is gaining momentum, but officials warned of continued uncertainty.

The announcement that China would force the US consulate to close had battered shares on Friday, sending the benchmark Shanghai Composite index 3.9% lower and the blue-chip CSI300 index 4.4% lower.

The smaller Shenzhen index ended up 0.28% and the start-up board ChiNext Composite index was higher by 0.149%. The index tracking the 50 most representative stocks on Shanghai's STAR market fell 1.06%.

So far this year, the Shanghai stock index is up 5.1% and the CSI300 has risen 10.5%, while China's H-share index listed in Hong Kong is down 9.7%. Shanghai stocks have risen 7.39% this month.