SHANGHAI - China's stocks rose for a third day as the outlook for increased investment in the clean energy industry and higher domestic consumption overshadowed concern the government won't relax its policy tightening measures.

Jiangsu Huasheng Tianlong Photoelectric Co paced gains for alternative fuel stocks as China said it may spend 5 trillion yuan in the next decade developing cleaner energy sources.

Air China Ltd and China Southern Airlines Co climbed more than 2 percent after domestic carriers flew more passengers last month. China Vanke Co and Poly Real Estate Group Co slid 0.8 percent on concern the government may maintain lending curbs.