(Yicai Global) Jan. 4 -- Shenzhen-based Kuang-Chi Technologies Co. will set up a new metamaterial development company in Xiong'an New Area in the northern Hebei province. The company's decision to operate in China's new economic zone represents the latest move by tech companies that want to settle in Xiong'an and signifies future prospects of the area.

Kuang-Chi's wholly-owned subsidiary, Shenzhen Kuang-Chi Metamaterials Technology Co., is set to establish a wholly-owned subsidiary with an investment of CNY50 million (USD7.7 million). The new company will engage in technology research and development, technical consultancy and metamaterials equipment services.

Many state-owned enterprises and private technology heavyweights have set up branches in Xiong'an New Area in an effort to seek policy support for their business objectives since the central government's decision to found a new economic area similar to the Shenzhen and Pudong Special Economic Zones.

Xiong'an New Area is located in the southern part of Hebei province, near Beijing. The Central Committee of the Communist Party of China and the State Council decided to set up Xiong'an New Area last April to move Beijing's non-capital functions there and to adjust and improve the layout and spatial structure of Beijing-Tianjin-Hebei economic region to foster new growth engines of innovation-driven development.