China's equities declined at the opening Wednesday after the central bank surprised the markets Tuesday with its first increase of interest rates in nearly three years.

The benchmark Shanghai Composite Index fell 1.81 percent to open at 2,947.51. The Shenzhen Component Index plunged 2.73 percent to open at 12,616.45.

Overnight, China's central bank announced a raise of its benchmark one-year lending and deposit rate by 0.25 percentage points effective from Wednesday.