Aug. 31 (Bloomberg) -- China's stocks rose, driving the CSI 300 Index to a record. China Southern Airlines Co. and Shanghai Airlines Co. both surged by the daily limit after announcing new aircraft orders valued at more than $2 billion, reflecting the nation's growing appetite for travel.

``Airlines are taking advantage of China's fast economic growth to expand,'' said Zhang Ling, who manages the equivalent of $1.1 billion at ICBC Credit Suisse Asset Management Co. in Beijing. ``That's very positive for them and will improve their earnings.''

The CSI 300 advanced 55.58, or 1.1 percent, to close at 5,296.81, exceeding its previous record close of 5,251.77 set Aug. 28. The measure jumped 19 percent this month, rising more than twice as fast as any of the other 88 global benchmarks tracked by Bloomberg.

A gauge of energy stocks that includes Offshore Oil Engineering Co. posted the biggest gain among the CSI 300's 10 industry groups, spurred by crude oil prices trading at a four- week high. Zhongjin Gold Corp. and Anhui Tongdu Copper Stock Co., dropped on speculation recent gains more than reflected their earnings prospects.

China's economy has grown at least 10 percent in each of the past four years, encouraging more people to travel. The nation's airlines are expected to fly 185 million passengers this year, 16 percent more than in 2006, the General Administration of Civil Aviation of China said June 6.

Air Travel

China Southern, the nation's largest by passenger numbers, jumped 1.89 yuan, or 10 percent, to 20.79. Its Xiamen Airline Co. unit ordered 25 new Boeing 737-800s, Boeing Co. said late yesterday. The 737 carries a list price of $50 million to $85 million. Shanghai Airlines, the city's second-biggest carrier, advanced 1.27 yuan, or 10 percent, to 13.93. The company said it plans to order five Airbus SAS A321 airplanes, worth about $370 million at catalog prices. The aircraft will be delivered in 2011 and 2012, the airline said.

Hainan Airlines Co., a Chinese carrier backed by U.S. billionaire George Soros, added 0.75 yuan, or 7.7 percent, to 10.52. The company said first-half profit surged ninefold on increasing demand for flights from holidaymakers.

The nation's airlines and airports earned a combined profit of 4.62 billion yuan ($612 million) in the first six months of 2007, compared with a 350 million yuan loss last year, the General Administration of Civil Aviation of China said Aug. 3.

Air China Ltd., the world's biggest airline by market value, gained 1.75 yuan, or 10 percent, to 19.20. Air China President Cai Jianjiang told reporters in Hong Kong this week that the airline didn't exclude the possibility of merging with rivals including China Southern. The two airlines later said there were no plans to merge.

Oil, Coal

It's not just airlines benefiting from China's economic boom. The nation's 1,503 locally listed companies reported a 70 percent increase in combined first-half profit, the Shanghai Securities News reported today, citing its own data. The CSI 300, which tracks yuan-denominated A shares listed on China's two exchanges, added 1.5 percent this week.

Higher resource prices are also helping lift shares. Offshore Oil Engineering, a unit of China National Offshore Oil Corp., rose 4.04 yuan, or 9 percent, to 48.74 on speculation higher crude prices will spur exploration.

Crude oil futures rose to $73.65 a barrel in after-hours trading in New York, set for the highest close in four weeks. Costlier oil may boost demand for alternative fuels such as coal. Shanxi Xishan Coal and Electricity Power Co., a coal producer, added 1.83 yuan, or 4.2 percent, to 45.68.

Of the CSI 300's members, about two stocks rose for every one that fell.

Among the decliners, Zhongjin Gold, China's largest publicly traded gold miner by market value, lost 2.39 yuan, or 2.2 percent, to 107.41, snapping a 20 percent, three-day rally.

``Buying sentiment of commodity shares was too speculative,'' said ICBC Credit's Zhang. ``It's time they were on the path to the fair valuation.''

Anhui Tongdu Copper Stock Co., the listed arm of China's biggest producer of the metal, slid 0.72 yuan, or 2.5 percent, to 28.10. The shares rose 31 percent in the seven days through Aug. 28.

The Shanghai Composite Index, which tracks the bigger of China's stock exchanges, rose 1 percent to 5,218.82. The Shenzhen Composite Index added 1.3 percent to 1,457.84.

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

Last Updated: August 31, 2007 04:51 EDT