BEIJING, Aug. 4 -- Chinese shares hit fresh highs for 2014 on Monday following a string of increases in July, indicating the macroeconomic environment is warming up.

The benchmark Shanghai Composite Index surged 1.74 percent to finish at 2,223.33 points and the Shenzhen Component Index moved up 1.6 percent to close at 8,006.91 points.

The total turnovers on the Shanghai Stock Exchange and the Shenzhen Stock Exchange rose to 140.09 billion yuan (22.74 billion U.S. dollars) and 142.44 billion yuan in Monday trading.

The benchmark Shanghai Composite Index and the Shenzhen Component Index posted increasing figures last month. The former rose 7.48 percent in July and the latter grew 8.36 percent, marking the biggest monthly increases in two years.

Deng Ge, spokesman for the China Securities Regulatory Commission, attributed the warmth in the equity market to a stabilizing economy, abundant liquidity and anticipation of reduced financing costs.

Although the prospects of China's stock market remain uncertain, Gao Shanwen, chief economist with Essence Securities, said "the worst time may have gone."