[HONG KONG] Shares in Shanghai and Hong Kong advanced in the first few minutes of trade Monday after China cut borrowing costs at the end of last week and removed a cap on savings rates for commercial banks to boost competition.

The benchmark Shanghai Composite Index jumped 1.06 per cent, or 36.22 points, to 3,448.65, while the Shenzhen Composite Index, which tracks stocks on China's second exchange, gained 1.27 per cent, or 25.56 points, to 2,042.30.

And the Hang Seng Index in Hong Kong added 1.17 per cent, or 271.70 points, to 23423.64.

AFP