HONG KONG (Reuters) - Shares in Aluminum Corp of China (Chalco) (2600.HK: Quote, Profile, Research) rose as much as 10.5 percent on Wednesday, in line with regional metal stocks, after BHP Billiton (BHP.AX: Quote, Profile, Research) dropped its bid for rival Rio Tinto.

Chalco's parent, Chinalco, said on Tuesday it planned to increase its holding in Rio (RIO.L: Quote, Profile, Research)(RIO.AX: Quote, Profile, Research) to at least 14.99 percent from the 12 percent it holds now [nHKG83636], indicating that China's demand for resources will rebound.

The stock hit a session high of HK$3.25 before easing slightly to HK$3.23, up 9.9 percent at 0429 GMT.

(Reporting by Alison Leung; Editing by Anne Marie Roantree)