SHANGHAI - Most stocks on the Chinese mainland rose on Monday.

The advance came after Premier Wen Jiabao said the nation needs to start "fine-tuning" economic policies this quarter, boosting speculation that the government will ease monetary policy further.

Shuangliang Eco-Energy Systems Co, a maker of sea-water desalination equipment, advanced 4 percent after China said it will increase support for the industry. Western Mining Co led gains for metals producers.

China Vanke Co and Poly Real Estate Group Co led a gauge of property companies to its biggest drop in a week after Wuhu city said it will shelve a plan to provide housing subsidies.

Wen's comments "boosted sentiment but this is nothing different from what he said back in December", said Helen Zhu, a strategist at Goldman Sachs Group Inc. "Policymakers actually have a lot of different policy areas they can fine tune."

The Shanghai Composite Index slipped 0.13 point, or less than 0.1 percent, to 2351.85 at the close. About five stocks rose for every two that fell on the measure. The CSI 300 Index lost 0.1 percent to 2531.98.

The Shanghai index advanced 0.9 percent last week for a fourth weekly gain, its longest winning streak since July 15.

The measure has rebounded 6.9 percent this year on speculation the central bank will further cut lenders' reserve-requirement ratios to spur growth.

It announced a reduction in reserve ratios on Nov 30, the first cut since 2008, after boosting them and interest rates last year to cool inflation that accelerated to its fastest pace in three years in July.

China will increase policy support in the areas of fiscal and taxation, financial and pricing for the sea-water desalination industry and projects, according to a State Council statement posted on the government's website on Monday.

Shuangliang Eco-Energy jumped 4 percent to 8.24 yuan ($1.31), its highest close since Dec 21. China Gezhouba Group Co added 0.5 percent to 8.14 yuan. Anhui Water Resources Development Co rose 0.7 percent to 13.94 yuan.

China's economic circumstances in January and the first quarter deserve attention, Wen told business executives last week in Beijing, according to reports on the official Xinhua News Agency on Sunday.

Wen's remarks may fuel speculation that the government will soon ease policy to preserve growth in the world's second-biggest economy. New lending missed estimates by 26 percent in January and money supply grew the least in more than a decade, according to data released by the central bank on Friday after the market closed.

Chinese banks extended 738.1 billion yuan of new yuan-denominated loans last month, the People's Bank of China said in a statement.

Bloomberg News