Chinese stocks rise on talk of US stimulus

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."