SHANGHAI - Stocks on the Chinese mainland rose to the highest in a week, led by commodity producers, after US Federal Reserve Chairman Ben S. Bernanke said he is prepared to provide additional stimulus to boost the economy.

Zijin Mining Group Co, the nation's biggest producer of bullion, climbed to a seven-month high as Euro Pacific Capital Inc predicted gold may surge to $2,000 if the Fed starts a third round of US debt purchases. Jiangxi Copper Co rose 2.7 percent after global commodity prices climbed to a four-week peak. Poly Real Estate Group Co paced declines for property developers after Market News International cited the nation's economic planners as saying policy tightening will carry on.

"The QE3 will provide a short-term boost to the United States and the asset markets including stocks and commodities as the whole financial system will be flooded with cash," said Sun Chao, an analyst at CITIC Securities Co, China's biggest brokerage. "On the domestic front, local investors still expect the government to ease policy tightening and growth to pick up again."

The Shanghai Composite Index, which tracks the bigger of China's stock exchanges, climbed 14.97 points, or 0.5 percent, to 2810.44 at the 3 pm close, the highest since July 6. The CSI 300 Index added 0.3 percent to 3115.75.

The Shanghai gauge gained the most since July 4 on Wednesday, after a government report showed China's economy grew at a faster-than-expected 9.5 percent in the second quarter and industrial production rose more than estimated in June.

Gauges of energy stocks advanced 1.4 percent and material stocks 1.2 percent on Thursday, the two biggest gainers among the CSI 300's 10 industry groups.

The Standard & Poor's GSCI index of 24 commodities rose 1.2 percent to 698.04 on Wednesday, the highest close since June 14. Gold futures gained to a record on Wednesday in New York.

Gold prices, which advanced to a record $1,589.80 an ounce on Thursday, may surge to $2,000 if the Fed starts a third round of US debt purchases, according to Michael Pento, an economist at Euro Pacific. "People will be forced into buying gold."

Inflation climbed to a three-year high of 6.4 percent last month, the statistics bureau said on July 9. That exceeded the previous month's 5.5 percent and the government's full-year target of 4 percent.

China may raise interest rates once more if inflation remains at elevated levels, Market News International reported on Thursday, citing an unidentified person close to the National Development and Reform Commission.

Tightening will continue into the second half of this year and consumer prices may rise 6.2 percent in July, Market News said, citing the person familiar with discussions at the top levels of the planning body.

Moody's Investors Service put the US, rated AAA since 1917, under review for a credit-rating downgrade for the first time since 1995 on concern the government's $14.3 trillion debt limit will not be raised in time to prevent a missed payment of interest or principal on outstanding bonds and notes even though the risk remains low.

Bloomberg News