SINGAPORE, Sept 24 (Reuters) - Chinese stocks rose

broadly on Tuesday and bonds rallied after the country announced

fresh stimulus measures, including larger-than-expected rate

cuts, in a bid to prop up its ailing economy.

In a press conference on Tuesday, People's Bank of China

(PBOC) Governor Pan Gongsheng said the central bank will cut

banks' reserve requirement ratio (RRR) by 50 basis points and

reduce key interest rates to support a recovery in prices.

That came alongside the lowering of the country's

medium-term lending facility (MLF) rate by 0.3 percentage point,

as well as the loan prime rate (LPR).

Benchmark mainland indexes opened up following the

announcement, with the CSI300 blue-chip index and

Shanghai Composite Index each gaining roughly 1%.

Stocks in Hong Kong jumped, with the Hang Seng Index

gaining 2%.

"The market reaction so far, I think is positive," said

Khoon Goh, head of Asia research at ANZ.

"While there was some anticipation that stimulus measures

would be announced after they mentioned there was going to be a

press briefing, the package of measures so far, I would say, is

probably larger than what market was expecting."

Bonds rallied on the back of the bigger-than-expected rate

cuts.

The yield on China's benchmark 10-yr government bond

fell 4 basis points to 2.036%, close to the record

low hit last week, while 30-year treasury futures for December

delivery rose to a record high.

"The move probably comes a bit too late, but it is better

late than never. With an elevated real interest rate, poor

sentiment, and no rebound in the property market, China needs a

lower-rate environment to boost confidence," said Gary Ng,

senior economist at Natixis.

"With a more dovish Fed, China may be more willing to start

a new round of laxer policy cycle."

The yuan was little changed following the announcements,

with the onshore unit 0.08% lower at 7.2099 per

dollar.

Its offshore counterpart gained a marginal 0.05% to

7.0601 per dollar.