HONG KONG (AFP) - Shares in Hong Kong and Shanghai rallied at Wednesday's open following strong gains on Wall Street and after the People's Bank of China cut the amount of cash some lenders must keep with it in order to boost liquidity for businesses.

The Hang Seng Index added 1.21 per cent, or 362.91 points, to 30,425.66.

The benchmark Shanghai Composite Index rose 0.82 per cent, or 25.11 points, to 3,091.91 and the Shenzhen Composite Index, which tracks stocks on China's second exchange, climbed 0.63 per cent, or 11.16 points, to 1,795.72.