Hong Kong's Hang Seng index rallied on Thursday as PBOC said it will guarantee adequate liquidity in financial system through cuts in the reserve requirement ratio, signalling the lender is preparing additional easing measures. Hang Seng index surged 1.03% or 214.28 points to 20,995.01. Energy shares climbed with Cnooc adding 1.6% and China Petroleum & Chemical soaring 1.7%. European demand dependent exporters slipped with Esprit Holdings dropping 1.2% as investors remained cautious about surging bad loans in Spain.