Mainland stocks advanced on Monday, with insurers and brokers leading gains, as upbeat trade data and top policymakers pledging to support the economy boosted sentiment.

However, in Hong Kong, the benchmark Hang Seng Index lost 319 points, or 1.23 percent, to end trading at 25,765. The Hang Seng Tech Index closed flat.

The benchmark Shanghai Composite Index was up 21 points, or 0.54 percent, at 3,924 while the Shenzhen Component Index closed 182 points, or 1.39 percent higher, at 13,329 and the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, gained 80 points, or 2.6 percent, to close at 3,190.

The blue-chip CSI 300 Index jumped 0.8 percent to the highest level since November 14.

The combined turnover of the main Shanghai and Shenzhen indexes stood at 2.04 trillion yuan, up from 1.73 trillion yuan on Friday.

Shares related to computing hardware led gains, while coal, precious metals, and oil and gas sectors were among the top decliners.

China will keep expanding domestic demand and support the broader economy with more proactive measures in 2026, including "more proactive fiscal policy" and "appropriately loose monetary policy", the Politburo, the top decision-making body of the ruling Communist Party, said on Monday.

That follows the better-than-expected export data, which was buoyed by a boost from a US tariff truce.

Leading gains, the CSI Investment Banking and Brokerage Index jumped 2 percent and the insurance sector rallied 1.3 percent.

Wu Qing, chairman of the China Securities Regulatory Commission, said on Saturday that the regulator would allow top financial firms to relax capital requirements and leverage limits to work more efficiently.

That came after the insurance sector regulator said on Friday that it would lower the risk factor for insurers holding certain stocks, a move that could reduce capital requirements and free up more funds for investment.

Both announcements showed regulators' loosening stance, which "will encourage incremental money from institutions into the equity market", Goldman Sachs said.

Meanwhile, the CSI AI Index jumped 3.1 percent and the chip shares added 2.2 percent, as optimism towards domestic chips continued to buoy the sectors.

The property sector added 0.2 percent to recover from the sell-off last week triggered by Vanke's debt problem.

Investors are now watching the potential Central Economic Work Conference later this week for more cues on policy directions. (Reuters/Xinhua)