After the large-scale suspension of trading last week due to the plunge in stock prices, 366 companies rushed to resume trading on Monday, according to a statement by the Shanghai and Shenzhen stock exchanges,

More than 1,400 listed companies chose to have trading in their shares halted last Wednesday, an unprecedented spectacle in China's stock market.

However, Chinese shares have rallied in the past three consecutive trading days, and the benchmark Shanghai index jumped more than 3 percent in the afternoon trading session on Monday to regain the 4,000-point psychological mark.

The Shanghai Composite Index was also up after gaining more than 10 percent in the previous two sessions.

The rally came after the latest measures from regulators, which involved cracking down on gray-market margin lending.

An investigation team led by China's Vice-Minister of Public Security Meng Qingfeng, visited the head office of the China Securities Regulatory Commission on Thursday morning to investigate what it called "malicious short-selling of stocks and stock indices", an example of the dodgy practices many believe were part of the recent stock over the past few weeks.

The team is currently carrying out further probes. It did not give other details.