The Hong Kong market opened higher on Monday amid an announcement by the mainland central bank to cut two key lending rates.

The Hang Seng Index gained 47 points or 0.27 percent at 17,465.

Mainland stocks were mixed on Monday, with the benchmark Shanghai Composite Index down 0.14 percent to open at 2,978.19 points and the Shenzhen Component Index 0.06 percent higher at 8,908.21 points.

Earlier, the People's Bank of China announced it was cutting two key rates.

The one-year loan prime rate (LPR) was lowered by 10 basis points to 3.35 percent from 3.45 percent previously, while the five-year LPR was reduced by the same margin to 3.85 percent from 3.95 percent .

Most new and outstanding loans in China are based on the one-year LPR, while the five-year rate influences the pricing of mortgages. (Xinhua/Reuters)