Analysts say Chinese stocks might have entered a bull market after the biggest one-day gain in 10 months on Monday sent the benchmark to its highest level this year.

The Shanghai Composite Index jumped 2.41 percent to close at 2,177.95 points, the biggest gain since Sept 9, after data showed that Chinese industrial firms' profit growth in June was the highest this year.

"The economic stabilization and policy easing pushed a rebound in the market," said Yang Delong, chief strategist with China Southern Asset Management, adding that a report of the imminent start of a trial linking exchanges in Shanghai and Hong Kong also helped raise market sentiment.