The blue-chip CSI300 index was up 0.26%, with its financial sector sub-index higher by 0.06%, the consumer staples sector up 2.62%, the real estate index up 1.39% and the healthcare sub-index up 1.81%.
Real estate shares got a boost from new data showing China's new home prices rose at a slightly faster pace in April, adding to signs of a gradual recovery in the property market. Chinese authorities have pledged to support the pandemic-hit economy.
The smaller Shenzhen index ended down 0.43% and the start-up board ChiNext Composite index was weaker by 0.445%.
Improved risk appetite pushed benchmark 10-year Chinese government bond futures lower. The most-traded contract, for September delivery, fell as much as 0.60% and was last down 0.52%.
However, highlighting continued difficulties for the economy, global demand has slumped significantly due to the virus outbreak and trade faces "unprecedented challenges", China's commerce minister said on Monday.
Tech shares slumped 3.30% after a report said Taiwan Semiconductor Manufacturing Co Ltd has stopped new orders from Huawei Technologies in response to US moves to limit chip supplies to Huawei, which have reinflamed US-China trade war concerns. TSMC said the report was "purely market rumour".
So far this year, the Shanghai stock index is down 5.7% and the CSI300 has fallen 4.2%, while China's H-share index listed in Hong Kong is down 12.9%. Shanghai stocks have risen 0.54% this month.