BEIJING, July 14 -- Chinese shares closed higher on Monday, led by a surge in new energy-related shares as authorities unveiled a plan to encourage government organs to buy more new energy vehicles.

The benchmark Shanghai Composite Index rose 0.96 percent to finish at 2,066.65 points, and the Shenzhen Component Index gained 1 percent to close at 7,278.86 points.

The new energy vehicle plan, released on Sunday, has been hailed as a move to fight pollution and boost this nascent sector of the car market.

From 2014 to 2016, new energy vehicles will account for no less than 30 percent of cars newly purchased by state organs every year, under the plan.

Boosted by the news, shares including those related to charging stations and lithium batteries rallied across the board.

Ankai Automobile Co., Ltd, a producer of new energy coaches, surged by the daily limit of 10 percent to end at 4.91 yuan (0.8 U.S. dollar) per share, while Sinoma Science and Technology Co. gained 8.74 percent to end the day at 11.95 yuan.