** Hong Kong shares of Aluminum Corporation of China Ltd (Chinalco) 2600.HK climb 1.9% to HK$8.47, on course for the biggest one-day pct gain since October 15

** Shanghai-listed stock 601600.SS adds 1.5% on the seocnd session of rise

** Rio Tinto RIO.L, RIO.AX is exploring a potential asset-for-equity swap with Chinalco that would trim the Chinese investor's 11% stake, freeing up Rio to resume buybacks and pursue new strategic deals, three people familiar with the matter told Reuters

** Chinalco would exchange part of its holding for partnerships in some of Rio's mining assets, ending governance constraints that have hamstrung the Anglo-Australian company's flexibility for over 15 years, the sources said

** YTD, Hong Kong stock up 88.2%, Shanghai-listed shares up 19.1%, benchmark CSI 300 Index .CSI300 up 16.7%

(Reporting by Donny Kwok)

((donny.kwok@thomsonreuters.com))