SHANGHAI - Stocks on the Chinese mainland rebounded from the biggest drop in seven weeks after the economy expanded more than estimated last quarter, easing concerns the central bank's tightening measures are curbing growth.

Jiangxi Copper Co, the nation's biggest producer of the metal, surged 3.4 percent after China's economic growth exceeded estimates. Agricultural Bank of China Ltd (ABC) and Shenzhen Development Bank Co (SDB) led an advance for financial stocks after forecasting higher profit.

Zijin Mining Group Co, China's largest gold producer, rose to the highest in almost three months as spot bullion jumped to a record.

"The data suggest China's economy is growing at a moderate pace but is still pretty healthy," said Zhang Ling, general manager at Shanghai River Fund Management Co.

"We'll focus on the inflation figures going forward. If that's brought under control, growth will pick up again and that'll be positive for stocks."

The Shanghai Composite Index, which tracks the bigger of China's stock exchanges, climbed 40.89 points, or 1.5 percent, to 2795.48, the most since July 4. It dropped 1.7 percent on Tuesday.

The CSI 300 Index advanced 1.6 percent to 3106.25, led by commodity producers and consumer companies.

Jiangxi Copper gained for the first time in five days, rising 3.4 percent to 36.07 yuan ($5.58). First-half net income likely climbed by more than 50 percent year-on-year on higher output and sale prices, the company said in a statement.

Tongling Nonferrous Metals Group Co, China's second-biggest copper producer, added 2.8 percent to 24.97 yuan. Yunnan Copper Industry Co, the fourth-biggest, increased 2.4 percent to 22.38 yuan. The metal for September delivery on the Shanghai Futures Exchange rose 1.1 percent to 71,900 yuan a ton.

Zijin Mining advanced 4.2 percent to 5.44 yuan, its highest close since April 22. Zhongjin Gold Corp, China's third-largest bullion producer, added 4 percent to 28.94 yuan.

Spot gold jumped to an all-time high in Shanghai as investors sought to protect their wealth on concern the escalating debt crisis in Europe could trigger a global slowdown.

ABC, the nation's fourth-largest lender by assets, climbed 1.9 percent to 2.71 yuan after it estimated first-half net income may have risen more than 45 percent from a year earlier. SDB jumped 3.2 percent to 17.54 yuan after saying first-half net income may have risen 50 percent to 60 percent to as much as 4.85 billion yuan.

Chinese banks probably recorded an average 34 percent increase in first-half profit, analysts led by Zhu Yan at CITIC Securities Co wrote in a report on Wednesday.

Bloomberg News