SHANGHAI (Dow Jones)--Strong metal and coal prices on the international market attracted buying in nonferrous and coal companies, helping China shares end at a 13-month high Monday.

The benchmark Shanghai Composite Index, which tracks both A and B shares, ended up 2.4% at 3266.92 in heavy trade, the highest close since June 6, 2008, when the index was at 3329.67.

The Shenzhen Composite Index rose 1.8% to 1104.19.

Analysts said the benchmark index is likely to test psychological resistance at 3300 in the coming sessions, because there are signs the global economy is recovering.

"Resource-related companies are expected to attract more funds as the global economy has shown some signs of recovery," said Zhou Lin, an analyst at Huatai Securities.

Nonferrous producers led the gains following a base metal rally on the London Metal Exchange Friday, which was driven by technical buying after key prices were broken. Stronger-than-expected U.S. housing data also supported the rally..

Aluminum Corp. of China rose by the 10% daily trading limit to CNY16.57, and Jiangxi Copper also surged 10% to CNY43.90.

Coal companies also rose, on hopes of stronger demand for domestically produced coal due to rising Australian coal prices.

Australian coal at the port of Newcastle, a regional benchmark, was assessed around $76.20 a metric ton by globalCOAL Friday, up 6% from a week earlier.

China Shenhua Energy jumped 5.4% to CNY36.17, and Datong Coal Industry rose 6.4% to CNY45.60.

Real estate developers bucked the rising trend in the broader market, after China's top banking regulator on Saturday warned about hidden risks associated with the country's fast loan growth in the first half of this year.

Liu Mingkang, chairman of the China Banking Regulatory Commission, urged banks to guard against real-estate projects that have falsified or inadequate capital and risks, according to a statement on the commission's Web site.

Separately, the China Economic Weekly reported Monday that China's State Administration of Taxation plans to launch a property tax program by 2010, which could curb speculation in the real-estate market.

China Vanke dropped 0.8% to CNY13.96, and Poly Real Estate was down 2.0% at CNY28.62.

"But Beijing is more likely to fine-tune its policy on real estate and housing loans instead of adopting aggressive measures, as the domestic and global economies are still weak," said Wang Junqing, an analyst at Guosen Securities.

Analysts advised caution as the subscription for China State Construction Engineering Corp.'s massive initial public offering, which starts Tuesday, may divert some funds from the market.