SHANGHAI - Stocks on the Chinese mainland rose, sending the benchmark to its biggest gain in two weeks, after data showing industrial companies' first-half profits advanced eased concerns that government measures to curb inflation will hurt earnings growth.

China Shipbuilding Industry Co jumped the most in a month, leading advances among industrial companies. Zijin Mining Group Co rose after gold futures climbed to a record as investors sought a haven from a possible US debt default.

The Shanghai Composite Index added 20.45 points, or 0.8 percent, to close at 2723.49, the most since July 13. The gauge has risen 1.3 percent from a one-month low reached two days earlier following a fatal train crash on July 23. The CSI 300 Index increased 0.8 percent to 3000.05.

"The market was over-pessimistic about the aftermath of the train crash," said Wu Kan, a fund manager at Dazhong Insurance Co, which oversees $285 million.

"That would lead to some recovery in valuations for the short term, given the accident isn't changing anything fundamental in the economy."

Stocks rebounded in the morning after the National Bureau of Statistics said first-half net income for industrial companies climbed 28.7 percent year-on-year, compared with a 27.9 percent gain in January through May.

The International Monetary Fund forecast on June 17 that China's economy will grow 9.6 percent this year, the fastest among the major emerging markets.

China Shipbuilding Industry Corp climbed 3.9 percent to 13.71 yuan ($2.13), the biggest advance since June 27. Beijing New Building Materials Public Ltd paced gains by construction-material makers, rising 4.3 percent to 15.99 yuan.

Anhui Conch Cement Co, the nation's largest building-materials producer, rose 1.2 percent to 26.19 yuan. Huaxin Cement Co added 1.2 percent to 26.38 yuan.

A gauge tracking material makers in the CSI 300 Index increased the most among 10 groups, rising 1.9 percent.

Zijin Mining, China's biggest gold producer, increased 3.6 percent to 5.70 yuan, the largest rise since July 14.

Shandong Gold Mining Co gained 1 percent to 49.84 yuan.

A gauge tracking consumer staples in the CSI 300 Index climbed 1.2 percent. Tsingtao Brewery Co, China's biggest brewer by market value, advanced 5.1 percent to 38.46 yuan. Wuliangye Yibin Co added 1.6 percent to 38.40 yuan.

Monthly maturing central-bank bills will average 227 billion yuan in the second half, compared with an average of more than 600 billion yuan in the first half, reducing pressure on the central bank to absorb cash from the financial system, the China Securities Journal reported.

Bloomberg News