Oct. 19 (Bloomberg) -- Poly Real Estate Group Co., China's second-largest developer by market value, rose by the most in more than a week on Shanghai's stock exchange after saying full- year profit may double because of rising home sales.

The company gained 6.1 percent to a five-day high of 75.07 yuan after earlier climbing as much as 8.8 percent. The company made a full-year profit of 658.8 million yuan ($87.7 million) last year, it said in a stock exchange statement today, without giving a specific forecast for 2007's earnings.

Poly's third-quarter profit more than tripled, as decade- high inflation encouraged people to speculate in the property market, driving up prices. The central bank last month raised interest rates on some mortgages and increased minimum down payments to cool the market.

``Rising home prices contributed to earnings,'' said Yin Zi, an analyst at Shenyin Wanguo Research & Consulting Co. in Shanghai. ``We expect more real estate companies to report higher profits.''

House prices in China's 70 major cities rose by the most in two years in August.

Poly's third-quarter profit surged to 284.4 million yuan from 83.8 million yuan a year earlier, it said today. Third- quarter sales almost doubled to 1.81 billion yuan. Poly's shares have more than tripled this year.

Full-year profit will probably rise by at least 70 percent, according to the statement. Vice President Liu Ping was unavailable for comment.

Companies listed in China are required to make an announcement if they expect earnings to rise or fall more than 50 percent in a reporting period.

To contact the reporter on this story: Jiang Jianguo in Shanghai at jjiang@bloomberg.net

Last Updated: October 19, 2007 05:25 EDT