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By Bloomberg

Chinese stock turnover climbed to a record as the benchmark index rose to a three-year high, led by commodity producers and consumer companies.

The Shanghai Composite Index added 0.6 percent to 2,779.53 at the close after advancing as much as 2.2 percent and falling 1.1 percent. The value of shares traded on the Shanghai bourse jumped to 529.4 billion yuan ($86.1 billion), more than double the 30-day average, according to data compiled by Bloomberg stretching back to 2005. Trading on the New York stock exchange was $25.4 billion yesterday.

The Shanghai Composite’s has gained 14 percent over the past month through yesterday, trouncing all 92 of the world’s other benchmark equity indexes by at least six percentage points. Central bank efforts to bolster China’s economic growth, including lowering borrowing costs, are reviving optimism in the $4.5 trillion stock market after the index lost more value than any other major benchmark gauge in the past five years.

“The record turnover is a reflection of fresh capital flowing to the market from the real economy after the interest- rate cut,” said Wu Kan, a fund manager at Dragon Life Insurance Co. “We are going to see more volatility in the market like today as investors will be divided over the market outlook.”

Jiangxi Copper Co. rallied 10 percent and Zijin Mining Group Co. advanced 7 percent, as a gauge of commodity producers on the CSI 300 Index surged 5 percent. All six initial public offerings soared 44 percent on their first day of trading. Lenders declined, with Bank of China Ltd. sliding 4.2 percent, its biggest loss since June 27, after jumping 19 percent last month. China Everbright Bank Co. tumbled 4.8 percent.

Bonds Drop

The CSI 300 Index added 1.5 percent. The Hang Seng China Enterprises Index lost 0.6 percent, while the Hang Seng Index slipped 1 percent.

China’s 10-year bonds fell for a third day after the government sold debt due October 2021 to yield 3.60 percent, higher than the 3.44 percent forecast by analysts in a Bloomberg survey. The auction result shows demand is weakening on profit- taking as funds are reallocated to stocks, says Song Qiuhong, an analyst at Shunde Rural Commercial Bank Co. in Guangdong province.

Mainland investors are opening stock accounts at the fastest pace in three years, official data shows. That’s a sign there is “fundamental investor participation,” said Jonathan Garner, the Hong Kong-based head of Asia and emerging-market strategy at Morgan Stanley who predicted in June that monetary stimulus would drive a second-half rally in Chinese shares. “Moves on high volumes should always be taken seriously.”

Consumer Shares

China’s services gauge climbed for the first time in three months. The report from the National Bureau of Statistics and the China Federation of Logistics and Purchasing suggests services, which replaced manufacturing and construction as the biggest part of the economy in 2012, is helping China weather a property downturn.

A gauge tracking consumer discretionary companies advanced 3.1 percent. Gree Electric Appliances Inc., a maker of air conditioners, rallied 6.6 percent to a record. Citic Guoan Information Industry Co. added 5.4 percent to its highest level since August 2011.

In Hong Kong, casino operators slumped with Sands China Ltd. and Galaxy Entertainment Group Ltd. tumbling more than 5 percent. The two stocks were cut to underperform by Macquarie Group Ltd.