Shanghai stocks advanced on Monday morning trading as building materials and homebuilders gained after the Chinese government unveiled its urbanization plan.

The key Shanghai Composite Index added 0.47 percent, or 9.49 points, to 2,013.83. Turnover was 37.7 billion yuan (US$6.2 billion) by midday.

China yesterday published the 2014-2020 urbanization plan with an aim to spur domestic spending. The plan says that permanent urban residents should make up 60 percent of China's total population by 2020, up from 53.7 percent now.

Higher urbanization rate can help increase the income of rural residents and unleash the potential of domestic consumption, the plan says, adding that urbanization is a strong engine for sustainable economic growth as it stimulates investment in urban infrastructure, public services and housing development.

Building materials and homebuilders led the market up. Fujian Cement Inc jumped 5.3 percent to 7.70 yuan. Anhui Conch Cement Co Ltd rose 2.3 percent to 14.73 yuan. Ningbo Construction Co Ltd climbed 5.5 percent to 7.81 yuan.

Poly Real Estate, China's second-largest developer, increased 2.3 percent to 7.15 yuan. China Fortune Land Co Ltd surged 6.4 percent to 23.05 yuan.