The move will help establish a more market-driven interest rate system, the central bank said in the statement.
Investors may also be encouraged by the potential for improvement in US-China trade relations. US President Donald Trump said this weekend that Apple CEO Tim Cook made a "good case" about the effects the tariffs had on the tech company's business.
Here are some other big moves at 10:30 Hong Kong time: 
- Chinese stocks associated with Shenzhen merged in Hong Kong and the mainland. The Chinese government on Sunday announced a plan to transform Shenzhen, as Hong Kong's neighbors, into a global business center.
- Cathay Pacific Group ( reversed early gains and fell 0.9% in early trading in Hong Kong. The airline announced late Friday that it had accepted the resignation of CEO Rupert Hogg and chief customer and commercial manager Paul Loo. )
- Japan's exports fell 1.6% in July from the previous year, which was better than analysts expected. Imports dipped 1.2% in July and also beat expectations.
- Stocks in Asia took positive cues from Wall Street. Dow ( rose about 307 points, or 1.3% last Friday. ) S&P 500 ( and ) Nasdaq ( received 1.4% and 1.7 respectively %. )