China’s Stocks Rise to 7-Month High; Zijin, Jiangxi Copper Gain

By Zhang Shidong

April 1 (Bloomberg) -- China’s stocks rose, driving the benchmark index to a seven-month high. Zijin Mining Group Co. and Jiangxi Copper Co. led gains on expectations rising metals prices will boost the earnings outlook for commodity producers.

Jiangxi Copper jumped 2.6 percent, while Zijin Mining, the nation’s biggest gold producer, advanced 1.1 percent. China Shenhua Energy Co. advanced 5.8 percent after a newspaper report said the government may raise coal prices. Aluminum Corp. of China Ltd. added 3.1 percent.

“The risk of inflation is looming and investors are seeking a hedge in commodities, which will help to boost the earnings of raw-material companies,” said Yan Ji, an investment manager at HSBC Jintrust Fund Management Co. in Shanghai, which manages the equivalent of about $850 million.

The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, rose 34.80, or 1.5 percent, to 2,408.02 at the close, the highest since Aug. 25. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, gained 1.6 percent to 2,548.22.

To contact the reporter on this story: Zhang Shidong in Shanghai at szhang5@bloomberg.net