DOMESTIC stocks rose for a second straight day, driven by strong performances from bank stocks.

The Shanghai Composite Index, which tracks both yuan-denominated A shares and hard-currency B shares, added 2.83 percent, or 158.37 points, to 5,748.

The Shenzhen Composite Index, which covers the smaller mainland stock market, increased 1.87 percent, or 25.8 points, to 1,403.86.

Among the stocks on the Shanghai Composite Index, 534 rose, 228 fell and 84 were unchanged.

Industrial & Commercial Bank of China and Bank of Beijing paced advances among lenders after reporting higher third-quarter profit.

ICBC, the nation's biggest listed lender, jumped 7.22 percent, or 0.55 yuan (7 US cents), to 8.17 yuan. The shares traded for the first time since the lender Thursday said third-quarter profit rose 76 percent from a year earlier to 22.46 billion yuan as fee income soared and it earned more from extending loans.

ICBC agreed to buy 20 percent of Standard Bank Group Ltd, Africa's largest bank, for 36.7 billion rand in the biggest overseas investment by a Chinese company. Its shares were suspended from trading Friday, because of a shareholders' meeting.

The acquisition could increase ICBC's forecast 2008 earnings by 2.9 percent, according to a Goldman Sachs Group Inc estimate.

Bank of Beijing, the largest of the nation's 113 city banks, rose 2.90 percent, or 0.63 yuan, to 22.35 yuan. The bank said third-quarter profit rose 47 percent from a year earlier to 1.1 billion yuan because it offered more loans.

Bank of Communications also gained 3.37 percent, or 0.54 yuan, to 16.56 yuan. HSBC Holdings Plc raised its ownership in the Shanghai-based lender, known as Bocom, to 19 percent, buying 172.5 million shares for HK$2.16 billion.

China Life climbed 6.72 percent, or4.73 yuan, to 75.08 yuan. The insurer will report its earnings after the market closes today.

Non-ferrous metals also performed strong.

Jiangxi Copper, China's second-largest producer of the metal, surged 10 percent, or 5.98 yuan, to 65.82 yuan.

Aluminum Corporation of China also increased 2.28 percent, or 1.07 yuan, to 48.07 yuan. Zhongjin Gold, China's largest publicly traded gold miner by market value, advanced 7.14 percent, or 8.17 yuan, to 122.56 yuan.

Yunnan Tin Co Ltd, the biggest producer of the metal in China, jumped the daily cap of 10 percent, or 7.62 yuan, to close at 83.77 yuan today.

Elsewhere, China United Telecommunications Corp, which controls the nation's second-largest cell phone operator, said third-quarter net income climbed to 1.86 billion yuan from a revised 835.6 million yuan a year earlier. The stock added 4.35 percent, or 0.43 yuan, to 10.32 yuan.

But Guangdong Electric Power Development Co, the operator of power plants in the southern Chinese province bordering Hong Kong, lost 3.15 percent, or 0.47 yuan, to close at 14.45 yuan.

The company said third-quarter profit fell 47 percent from a year earlier to 138.4 million yuan as fuel costs increased.