Nov. 9 (Bloomberg) -- China’s stocks rose for a seventh day, sending the Shanghai Composite Index to its longest winning streak in two months. Datang International Power Generation Co. gained on speculation the nation will raise electricity prices.

Datang jumped 6.2 percent after CLSA Asia-Pacific Markets predicted China may raise retail electricity prices. SAIC Motor Corp. climbed after China Daily said passenger-vehicle sales increased 79.6 percent in October. Poly Real Estate Group Co. fell 0.9 percent after the government said regulators may impose measures to reduce the use of debt for real-estate sales.

“We’re still positive on China and prefer the domestic consumption theme because exports are still in limbo,” said Roger Groebli, Singapore-based head of financial market analysis at LGT Capital Management, which oversees about $75 billion in assets. “There’s always a certain degree of policy risk when investing in China, but the government has so far been quite successful in avoiding disappointment to investors.”

The Shanghai Composite Index, which tracks the bigger of China’s stock exchanges, added 11.55, or 0.4 percent, to 3,175.59 at the close, rounding off a seven-day, 7.3 percent rally. The advance is the longest since a similar streak of gains ended Sept. 9. The CSI 300 Index fell 0.4 percent to 3,495.79.

Datang International jumped 6.2 percent to 9.79 yuan, its largest gain in a month. CLSA said on Nov. 6 that China, the world’s second-biggest energy user, may raise retail electricity prices by 5 percent this month to help power distributors cover losses.

SAIC Motor climbed 0.7 percent to 24.92 yuan, its third straight day of gains. FAW Car Co., the Chinese partner of Mazda Motor Corp., added 2.5 percent to 21.97 yuan.

--Shiyin Chen, with assistance from John Liu in Shanghai. Editors: Linus Chua, Mark McCord

To contact Bloomberg News staff for this story: Shiyin Chen in Singapore at +65-6212-1170 or schen37@bloomberg.net.

Last Updated: November 9, 2009 02:21 EST