Hong Kong stocks rose on Monday as the mainland's central bank cut interest rate last week, renewing hopes of faster growth in the world's second largest economy.

The benchmark Hang Seng Index moved up 456.02 points, or 1.95 percent, to close at 23,893.14, after trading between 23,823.56 and 23,936.34. Turnover totaled 105.25 billion HK dollars (about 13.58 billion U.S. dollars).

The People's Bank of China cut one-year benchmark lending rates by 40 basis points to 5.6 percent late on Friday, which investors hope may signal the start of a fresh cycle of aggressive policies to boost flagging economic growth.

The move was announced after most Asian stock markets were closed, meaning Monday was the first time they had a chance to react.

The Hang Seng China Enterprises Index jumped 3.79 percent, or 395.65 points, to close at 10,842.83.

All four sub-indices gained ground. The Properties soared 3.63 percent; the Finance gained 1.87 percent; the Commerce and Industry rose 1.8 percent; the Utilities increased 0.64 percent.

Banking giant HSBC, which accounts for the largest weighting of the Hang Seng Index, edged up 0.78 percent to 77.1 HK dollars.

Bank of East Asia, one of the largest local banks in Hong Kong, increased 0.94 percent to 32.35 HK dollars.

Local bourse operator HKEX climbed 1.2 percent to 169.1 HK dollars.

Chinese mobile carrier China Mobile increased 2.16 percent to 96.9 HK dollars, while another Chinese telecom giant China Unicom moved up 2.1 percent to 11.62 HK dollars.

For the local property stocks, Sun Hung Kai, HK's largest property developer by market value, ended up 0.96 percent to 113.9 HK dollars; Cheung Kong properties, owned by billionaire Li Ka- shing, jumped 3.55 percent to 143 HK dollars.

As for mainland-based financial stocks, China Construction Bank, the country's second largest bank which accounts for the third largest weighting of the Hang Seng Index, ended up 2.14 percent to 5.72 HK dollars.

ICBC, the world's largest bank by market value, ended up 2.42 percent at 5.08 HK dollars. (1 U.S. dollar equals 7.76 HK dollars)