China’s stocks advanced, with the Shanghai Composite Index gaining for a second month, as Industrial & Commercial Bank of China Ltd. and Bank of China Ltd. beat profit estimates.

ICBC and Bank of China gained more than 2 percent. Tsingtao Brewery Co. rose 5.2 percent after net income almost doubled. Jiangxi Copper Co. and Zhongjin Gold Corp. climbed more than 2 percent on higher commodity prices after the U.S. emerged from recession. All 28 companies that listed on the country’s new Nasdaq-like start-up board rose as they began trading today.

Banks “are in good condition and can support the growth story in China,” Roger Groebli, Singapore-based head of financial market analysis at LGT Capital Management, which oversees about $75 billion in assets, said in a Bloomberg Television interview today.

The Shanghai Composite Index advanced 35.38, or 1.2 percent, to 2,995.85 at the close. The measure rallied 7.8 percent this month, the most since July, as government stimulus spending and record loans growth propelled the economy to the fastest pace in a year in the third quarter. The gauge is up 65 percent this year. The CSI 300 Index gained 1 percent to 3,280.37.

ICBC gained 2.2 percent to 5.06 yuan, after reporting third-quarter profit climbed 19 percent from a year earlier to 33.6 billion yuan, beating the 31.5 billion yuan average estimate of nine analysts surveyed by Bloomberg.

‘Turned the Corner’

Bank of China, the nation’s third largest, rose 2.3 percent to 4.06 yuan after profit in the third quarter gained 19 percent to 21.1 billion yuan, compared with the 20.52 billon yuan average analyst estimate in a Bloomberg survey.

China’s three largest lenders advanced 3.3 trillion yuan of new loans in the first nine months to finance a $586 billion stimulus plan. That’s helped drive an economic recovery and will accelerate profit growth at the banks to at least 20 percent next year, according to estimates compiled by Bloomberg.

The results are “evidence that things have turned the corner for Chinese banks at the end of the first half,” said Kenny Tang, an analyst at Hong Kong-based Redford Securities Co.

For the week, the Shanghai index lost 3.6 percent as China’s banking regulator said it plans to tighten rules on personal credit. Loans exceeding 300,000 yuan will be given directly to the counterparty of the borrower rather than the borrower, the China Banking Regulatory Commission said Oct. 28.

‘Bright Spot’

The index fell 6.1 percent in the third quarter, the worst performer among the largest emerging markets, as a slump in new lending in July dragged the gauge down 22 percent in August. China stocks remain “a bright spot” and are set to rise by 30 percent through 2010 as the nation’s domestic demand increase, Goldman Sachs Group Inc. said in a report yesterday.

Tsingtao Brewery, the country’s second-biggest brewer by volume, rose 5.2 percent to 32.13 yuan, the most this month. The company said third-quarter net income almost doubled to 615 million yuan.

Jiangxi Copper, the nation’s biggest producer of the metal, rallied 2.4 percent to 38.33 yuan. Zhongjin Gold gained 2.1 percent to 56.28 yuan. PetroChina Co., the world’s second most valuable company, added 1.3 percent to 13.31 yuan.

The London Metals Index, a measure of six metals including copper and zinc, rallied 3.5 percent, the largest advance in three weeks. Crude oil climbed 3.1 percent to $79.87 a barrel in New York yesterday.

The U.S. government said yesterday gross domestic product grew at a 3.5 percent pace from July through September. The growth, which followed four quarters of contraction, topped the median estimate of 3.2 percent in a Bloomberg survey of economists.

Chengdu Geeya Technology Co., a supplier of digital television equipment, surged threefold to 35 yuan, the biggest first-day gain among companies debuting on the new board.

The ChiNext market, which has fewer listing requirements than the nation’s two main boards, was created as an alternative for smaller Chinese companies such as filmmaker Huayi Brothers Media Corp. looking to raise funds.

The following stocks also rose in China trading. Stock symbols are in parentheses after company names:

Baoshan Iron & Steel Co. (600019 CH), China’s biggest steelmaker, gained 1.3 percent to 6.84 yuan, its first gain in four days. The company reported third-quarter net income rose 6.7 percent from a year earlier to 3.04 billion yuan. That matches the mean estimate of three analysts compiled by Bloomberg.

Beijing Gehua CATV Network Co. (600037 CH), which builds and operates cable television networks, gained 10 percent to 12.53 yuan, after third-quarter profit rose 27 percent to 102.86 million yuan.

Beiqi Foton Motor Co. (600166 CH), a Beijing-based automaker, climbed 4.3 percent to 18.51 yuan, after forecasting 2009 annual net income may rise more than 150 percent.

Liaoning SG Automotive Group Co. (600303 CH), an auto parts manufacturer, gained 10 percent to 10.49 yuan. Third-quarter profit increased 51 percent from a year earlier to 48.4 million yuan, according to a statement to the Shanghai stock exchange yesterday.