Nov. 10 (Bloomberg) -- China’s stocks rose for an eighth day, the longest winning streak in more than two years, as developers gained after home prices climbed and health-care companies advanced on mounting swine-flu cases.

Shanghai Industrial Development Co. and Beijing Capital Development Co. surged at least 4 percent as house prices jumped the most in 14 months in October. Beijing Tiantan Biological Products Corp. rose 2.5 percent after the health ministry said H1N1 cases have soared since September. FAW Car Co. climbed 5.2 percent after the nation’s passenger-car sales jumped last month.

The Shanghai Composite Index gained 3.03, or 0.1 percent, to 3,178.61 at the close, completing an eight-day, 7.4 percent advance. The rally is the longest since the nine days to April 12, 2007. The CSI 300 Index, measuring exchanges in Shanghai and Shenzhen, rose 0.2 percent to 3,503.78.

“Economic data is positive and we are still in a bull market,” said Chen Shide, a Guangzhou-based fund manager at GF Fund Management Co., which oversees about $11.4 billion.

The Shanghai measure has climbed 14 percent this quarter, the best performer among 89 global indexes tracked by Bloomberg, on signs the government’s stimulus package and record lending will sustain the nation’s economic recovery. The gauge is up 75 percent this year.

Most of China’s economic data for October will be released in Beijing tomorrow. Exports probably declined at the slowest pace this year, according to the median forecast of economists in a Bloomberg survey.

Developers Gain

Shanghai Industrial gained 4.9 percent to 17.71 yuan, a three-month high. Beijing Capital added 6.1 percent to 23.96 yuan. Shanghai Shimao Co., a property developer controlled by billionaire Xu Rongmao, climbed 3.7 percent to 17.47 yuan.

Prices in 70 major cities rose 3.9 percent in October from a year earlier, the statistics bureau said on its Web site today. The bureau reported month-on-month house price gains for 65 of the 70 cities.

Poly Real Estate Group Co., China’s second-largest developer by market value, added 2.9 percent to 27.01 yuan after saying property sales for the first 10 months rose 155 percent.

Beijing Tiantan climbed 2.5 percent to 31.20 yuan. Hualan Biological Engineering Inc. rose 2 percent to 62.40 yuan. Both companies have previously won government orders for swine flu vaccines. Zhejiang Hisun Pharmaceutical Co. gained 6.8 percent to 25.47 yuan.

Swine Flu

China’s H1N1 cases have increased rapidly since September into provinces and areas that were previously free of the infectious disease, the Chinese health ministry’s spokesman Mao Qunan said in a Webcast. The virus is responsible for an estimated 80 percent of all influenza cases reported in China this winter, Mao said.

FAW advanced 5.2 percent to 23.11 yuan. Anhui Jianghuai Automobile Co., a unit of China’s biggest light-truck exporter, added 1.5 percent to 10.99 yuan. Passenger-car sales surged 76 percent to 946,400 units in October from a year earlier, the China Association of Automobile Manufacturers said yesterday.

SAIC Motor Corp., the country’s largest carmaker, rose 1.4 percent to 25.27 yuan after saying it increased sales in October by 90 percent to 240,300 vehicles.

Tianjin-based companies gained, led by Tianjin Port Co.’s 2.4 percent advance, after the Xinhua News Agency said the government approved the formation of a financial district in the city.

Tianjin Port advanced to 12.21 yuan. Tianjin Quanye Bazaar (Group) Co., an operator of department stores and supermarkets, jumped the 10 percent daily cap to 6 yuan. Tianjin Binhai Energy & Development Co. surged 10 percent to 8.02 yuan.

Tianjin will combine the city’s Tangguo, Hanguo and Dagang districts to create the Binhai district, Xinhua reported today. The central government wants to make the Binhai district China’s third economic engine along with the southern city of Shenzhen and the Pudong district of Shanghai, Xinhua reported in June.

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

China Railway Construction Corp. (601186 CH), the builder of more than half the nation’s rail links since 1949, rose 1.3 percent to 9.16 yuan after saying it won two contracts worth a combined 5.96 billion yuan.

Gem-Year Industrial Co. (601002 CH) advanced 3.6 percent to 6.85 yuan after saying it would benefit from the U.S. rejection of a request for an anti-dumping investigation of imports of Chinese-made fasteners. The U.S. International Trade Commission last week turned down a request for tariffs on Chinese-made fasteners, such as nuts and bolts, ruling that U.S. producers haven’t been harmed by the imports.

Industrial & Commercial Bank of China Ltd. (601398 CH), the nation’s biggest listed lender, added 1.3 percent to 5.34 yuan. Its Hong Kong-traded shares were raised to “outperform” from “neutral” at Credit Suisse Group AG, which said it’s more positive on Chinese lenders relative to the local market.

--Zhang Shidong. Editors: Richard Frost, Linus Chua

To contact Bloomberg News staff for this story: Zhang Shidong in Shanghai at +86-21-6104-7014 or szhang5@bloomberg.net

Last Updated: November 10, 2009 02:45 EST