China's stock markets ended three weeks of losses and skyrocketed on Monday, as shareholders cheered at the securities watchdog's approval of two mutual funds.

China's stock markets ended three weeks of losses and skyrocketed on Monday, as shareholders cheered at the securities watchdog's approval of two mutual funds.

The move was widely considered to have shifted momentum and allowed some investors to regain some losses before the traditional week-long Chinese New Year holiday. Shanghai and Shenzhen opened higher, with almost every stock gaining. Nearly a fifth of the 16-hundred listed stocks hit their daily 10 percent limit.

The Shanghai Composite Index spiked 8.1 percent on closing, the biggest jump in two and a half years. Shenzhen surged by almost the same amount, gaining 7.95 percent. The major Asian markets also realized significant gains on Monday.

Qin Xiaobin, Senior Strategic Analyst of Galaxy Securities said "After the continuous tumbling, the markets have created some good investment opportunities. The price-to-earnings ratios of listed companies averaged less than 23 based on Friday's closing prices."