An investor watches an electronic board showing stock information at a brokerage office in Fuyang city, East China's Anhui province, Oct 8, 2015. [Asianewsphoto by Lu Qijian]

Stocks rose after a week-long holiday amid speculation that the government will take more steps to shore up the economy.

The benchmark Shanghai Composite Index closed at 3,143.36, up 3 percent, while the Shenzhen Component Index jumped 4.1 percent to 10,394.73.

Internet and software companies led the gains on Thursday. Corporate management software and cloud service provider Yonyou Network Co jumped by the daily limit of 10 percent. CES China Information Development Co and Thunisoft Co surged 9.7 and 9.1 percent respectively.

The ChiNext index, which tracks China's NASDAQ-style board of growth enterprises, rallied 5.2 percent to close at 2,190.31.

More than 2,000 stocks advanced at the two markets, as 587.6 billion yuan worth of shares changed hands.

The gain came after the Shanghai gauge tumbled 29 percent in the third quarter, the biggest plunge among benchmark global indexes, as traders rushed to unwind leveraged positions.

The outstanding balance of margin trades at the Shanghai Exchange nosedived from the peak 1,482.9 billion yuan in June to 565.1 billion yuan as of Sept 30, according to the bourse.

The recent plunge has shed light on market valuations of some undervalued blue-chips, said Yang Delong, chief strategy analyst at China Southern Asset Management, adding that although a strong rebound is unlikely in the short term, "the market is waiting for signs of fundamental changes as stimulus."

The CSI 300 Index climbed 2.9 percent to 3,296.48.