Chinese stocks closed mixed Monday in thin trading, after a private survey showed activity in China's service sector expanded at the fastest pace in four months in May.

The benchmark Shanghai Composite Index fell 0.45 percent to close at 3,091.66 points. The Shenzhen Component Index closed 0.49 percent higher at 9,842.6 points.

Total turnover on the two bourses shrank to 321.96 billion yuan (about 47.35 billion U.S. dollars), from 341.2 billion yuan the previous trading day.

The Caixin service purchasing managers' index (PMI) rose to 52.8 in May from 51.5 in April, the strongest reading since January. An official survey released Wednesday also pointed to a faster expansion in the sector.

This came after both official and private PMI data showed signs of cooling in the manufacturing sector.

Banking shares ended lower on Monday, with the Industrial and Commercial Bank of China, the country's largest lender by market value, down 3.02 percent to 5.14 yuan. Bank of China fell 2.42 percent to 3.63 yuan.

Sectors concerning the development of combustible ice gained on news that China has an estimated 80 billion tonnes of the frozen fossil fuel and the country plans to set up two to four large combustible ice bases for industrial development.

Shares of Haimo Technologies Group Corp. surged by the 10-percent daily limit to 9.72 yuan. Sino Geophysical Co., Ltd. climbed 8.61 percent to 27 yuan.