Hong Kong stocks soared following a rate cut from China's central bank for the first time in seven months on Tuesday.

The Hang Seng Index jumped 1.49%, or 348.76 points, to end at 23,681.48. The Hang Seng China Enterprises Index rose 1.52%, or by 128.53 points, to 8,589.08.

Investor sentiment improved after The People's Bank of China slashed the one-year loan prime rate (LPR) to 3% from 3.1% previously and the five-year rate by 10 basis points to 3.5%.

The move is in line with central bank Governor Pan Gongsheng's pledge to cut interest rates earlier in May to boost the economy.

"The decrease in the borrowing costs will be a major driver for stocks," the South China Morning Post said, citing Guotai Haitong Securities analyst Fang Yi.

In corporate news, Contemporary Amperex Technology or CATL (HKG:3750, SHE:300750) made a strong trading debut in Hong Kong. The battery maker closed at HK$306.20 on Tuesday, over 16% higher than its IPO price of HK$263.

Elsewhere, 3SBio (HKG:1530) surged over 32% after it agreed to grant Pfizer an exclusive license to develop, manufacture, and commercialize tumor drug SSGJ-707 worldwide except in mainland China.

Pfizer may also potentially subscribe for $100 million worth of shares in biopharmaceutical company 3SBio.