Nov. 5 (Bloomberg) -- China's stocks rose the most in three weeks, led by financial and energy companies, on speculation Barack Obama will take steps as U.S. president to bolster the world's largest economy and as oil and metals prices jumped.

China Merchants Bank Co. surged 9.6 percent on speculation an economic stimulus plan backed by Obama will boost lending to manufacturers in China that sell 20 percent of overseas shipments in the U.S. Jiangxi Copper Co., China's No. 2 producer of the metal, gained 5.4 percent. China Shenhua Energy Co., the nation's largest coal miner, climbed 5.2 percent.

``Obama will take a more pragmatic and active approach to tackling the financial crisis and bolstering the economy than McCain,'' the losing Republican candidate in the election, said Wu Youhui, a strategist at GF Securities Co. in Guangzhou. ``That will benefit China's growth, especially its exports.''

The CSI 300 Index, tracking yuan-denominated A shares on China's two exchanges, gained 63.66, or 3.9 percent, to 1,691.42 at the close, the biggest advance since Oct. 13. All the 10 industry groups rose. The measure yesterday dropped to 11.4 times reported earnings, the cheapest since the index was created in 2005.

``Valuations of the overall market are pretty low and attractive now,'' said Yan Ji, an investment manager at HSBC Jintrust Fund Management Co. in Shanghai, which manages the equivalent of about $850 million. ``Investors are expecting some policy changes from the U.S. that can help to buoy China's economy.'' Yan said his firm is buying shares of consumer companies with strong pricing power.

Merchants, ICBC

Merchants Bank, the nation's biggest dual-currency credit- card issuer, advanced 9.6 percent to 12.71 yuan. Shenzhen Development Bank Co., controlled by buyout firm TPG Inc., rose 6 percent to 8.85 yuan. China Construction Bank Corp., the country's second-largest bank, added 3.5 percent to 4.09 yuan. Ping An Insurance (Group) Co., China's second-biggest insurer, gained 6.4 percent to 25.30 yuan.

Democrat Barack Obama, elected the 44th U.S. president, has urged Congress to pass an economic stimulus bill immediately after the election. The Standard & Poor's 500 index climbed 4.1 percent yesterday, the biggest presidential election day rally in 24 years. Most Asian markets advanced and the dollar gained against the euro.

``Long-term healthy and stable development of the China-U.S. relationship is of great significance for the promotion and maintenance of world peace, stability and development,'' President Hu Jintao told Obama in a congratulatory telephone call today, according to a statement on the Ministry of Foreign Affairs Web site.

China-U.S.

Obama's overwhelming victory, combined with enlarged majorities in the U.S. House of Representatives and Senate increased speculation that the arms of government will unite in accelerating policies aimed at overcoming recession.

Global financial market turmoil originating in the U.S. subprime mortgage crisis helped to drive the CSI 300 68 percent lower this year, making China Asia's worst-performing benchmark index. Obama's support for a moratorium on home foreclosures and a congressional plan to encourage lenders to refinance troubled loans may help to speed a revival in credit markets.

China's economy grew at the slowest pace in five years in the three months through September as export orders shrank and industrial production waned. The expansion cooled for a fifth straight quarter, to a 9 percent gain from a year earlier.

On Nov. 2, the central bank scrapped curbs on loans after three interest rate cuts in seven weeks failed to revive economic growth.

Commodities

Jiangxi Copper rose 5.4 percent to 8.93 yuan. Shenhua gained 5.2 percent to 18.07 yuan. Tongling Nonferrous Metals Group Co., China's biggest copper producer, added 4.3 percent to 6.08 yuan. Datong Coal Industry Co., China's second-largest coal company by capacity, advanced 3.3 percent to 11.70 yuan.

Crude oil for December delivery rose 10 percent to $70.53 a barrel in New York yesterday, the biggest one-day gain since Sept. 22. Copper added 6.4 percent, while nickel surged 8.1 percent as the dollar weakened against global currencies.

The Shanghai Composite Index, which tracks the bigger of China's stock exchanges, rose 3.2 percent to 1,760.61. The Shenzhen Composite Index added 3 percent to 470.86.

The following companies were among the most active in China's markets. Stock symbols are in brackets after companies' names.

Air China Ltd. (601111 CH), the nation's largest international carrier, added 0.07 yuan, or 2.1 percent, to 3.48. Air China said it will sell bonds worth as much as 6 billion yuan ($878 million) to increase working capital.

China International Marine Containers Co. (000039 CH), the world's largest maker of shipping containers, rose 0.16 yuan, or 2.6 percent, to 6.40. The company said it bought a 10 percent stake in Yantai Raffles Shipyard Ltd. for 445 million kroner ($68 million). The transaction was completed on Nov. 3, it said.

Shenzhen Energy Group Co. (000027 CH), the utility partly owned by Huaneng Power International Inc., added 0.06 yuan, or 0.8 percent, to 8.01. The stock had its rating raised to ``buy'' from ``hold'' at GF Securities Co., because of higher-than- expected electricity output and increasing subsidy from the provincial government.

Sinochem International Corp. (600500 CH), a unit of China's biggest chemicals trader, advanced 0.30 yuan, or 4.9 percent, to 6.46. Sinochem said it held a 29.19 percent stake in Nantong Jiangshan Agrochemical & Chemicals Co. (600389 CH), becoming the largest shareholder. Jiangshan jumped 0.54 yuan, or 5.7 percent, to 10.03.

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

Last Updated: November 5, 2008 03:14 EST