Shanghai's stock market rose at the noon break. Kweichow Moutai Co l(stock code: 600519) led the jump after it released last year's earnings report.
The Shanghai Composite Index, which tracks yuan-denominated A shares and hard-currency B shares, added 1.77 percent, or 76.78 points, to 4,425.32.
Gainers in the Shanghai market outnumbered losers 720 to 112 while 20 were unchanged.
The Shenzhen Composite Index, which covers the mainland's smaller stock market, increased 1.80 percent, or 24.77 points, to 1,398.66.
Kweichow Moutai Co, the maker of a fiery alcohol, rose the 10 percent daily limit, or 19.50 yuan (US$2.75), to 214.50 yuan, after reporting 2007 profit jumped 81 percent.
Net income climbed to 2.88 billion yuan, from an adjusted 1.59 billion yuan in 2006, the company said in a statement to Shanghai's stock exchange on Saturday. Sales gained 48 percent to 7.24 billion yuan.
Gold producers also performed strong this morning after the price of the metal surged above a record of US$980 an ounce today.
Zhongjin Gold, the nation's biggest producer of the metal, jumped seven percent, or 7.42 yuan, to finish the session at 113.32 yuan while Shandong Gold advanced 6.55 percent, or 14.01 yuan, to 228 yuan.
Gold rose to a record above US$980 an ounce in Asia today as a weakening US dollar increased the appeal of the precious metal as an alternative investment and rising raw material costs boosted demand for a hedge against inflation.
Bullion may top US$1,000 an ounce for the first time on accelerating consumer prices, according to Bloomberg News.
On the other side, Ping An Insurance (stock code: 601318), China's second-biggest insurer, lost one percent, or 0.72 yuan, to 70.48 yuan. Its 3.1 billion yuan-denominated shares sold during domestic stock sales will become tradable today as their one-year lockup period expires. Some "strategic investors," representing 42 percent of outstanding shares, will be allowed to sell their holdings.
Export-related stocks, including Guangdong Midea Electric Appliances Co, fell on expectations a slowing US economy will reduce global demand for China's goods.
Guangdong Midea Electric Appliances Co (stock code: 000527) fell 3.26 percent, or 1.40 yuan, to 41.60 yuan. Guangdon Midea is the nation's second-biggest publicly traded appliance maker. China Cosco Holdings Co, Asia's largest container line, edged up 0.03 percent, or 0.01 yuan, to 36.67 yuan.
US stocks plunged on Friday, capping the market's fourth monthly drop, after the National Association of Purchasing Management-Chicago said its business barometer contracted as production and employment weakened. The Standard & Poor's 500 Index declined 2.7 percent on Friday, the most since February 5.