SHANGHAI - Stocks on the Chinese mainland rose for the first time in three days on speculation the US Federal Reserve may consider another program to stimulate the world's biggest economy to prevent a recession.

Anhui Conch Cement Co led gains for cement companies after the government said combined profit at domestic makers of the building material more than doubled in the first five months. Xi'an Aircraft International Corp climbed 2.86 percent after Shanghai Securities News reported the government will make aircraft manufacturing one of the nation's strategic industries.

"A new round of quantitative easing would provide a short-term boost to asset classes such as the commodity markets, and the underlying stocks would benefit as well," said Wang Zheng, chief investment officer at Jingxi Investment Management Co, which manages about $120 million.

The Shanghai Composite Index climbed 0.21 percent and the CSI 300 Index rose 0.18 percent on Thursday.

The Shanghai measure trades at 12.3 times estimated earnings, approaching the lowest since October 2008, when it was at 12.2. The gauge slumped 12 percent from this year's high on April 18 on concern that growth in the world's second-biggest economy was slowing as the government implemented measures to stem inflation.

The central bank has raised rates five times and ordered lenders to set aside more cash as deposit reserves 12 times since the start of 2010 to contain price rises, which quickened to the fastest pace in three years in June.

Anhui Conch, China's biggest cement maker, rose 2.55 percent to 26.19 yuan ($4.07). Huaxin Cement Co, the Chinese affiliate of Holcim Ltd, jumped 6.25 percent to 27.69 yuan. Jiangxi Wannianqing Cement Co gained 2.39 percent to 18.82 yuan.

China's cement makers had a combined profit of 35.2 billion yuan in the first five months, the Ministry of Industry and Information Technology said in a statement on Wednesday. The average price of cement rose by 57.24 yuan a ton in June from a year earlier, the statement said.

Chinese listed companies' gross profit margins may rebound in the third quarter, bolstering earnings, Shenyin & Wanguo Securities Co said on Thursday. Companies' net income is expected to rise more than 20 percent this year, the brokerage said.

Shenyin recommended buying so-called cyclical stocks, such as auto and cement makers, which are tied to economic growth, because of low valuations, analysts led by Ling Peng wrote in a report released on Thursday.

The Shanghai Composite Index may gain 500 points in the second half, the analysts wrote.

The Standard & Poor's 500 Index advanced 0.5 percent on Wednesday, snapping a seven-day decline

Bloomberg News