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BBMG Corporation, a Chinese cement manufacturer and supplier in Hebei province, soared on Monday after President Xi Jinping on Saturday proposed a new modern urban district in the province.

The new 100 square kilometre area named as the Xiongan New Area, is 100km southwest of Beijing and is designed to advance the development of the Beijing-Tianjin-Hebei region, according to state news agency Xinhua. It will be expanded to become a 2,000 square kilometre area in the long-term.

Mr Xi’s plans follow on from plans by his predecessors Deng Xiaoping and Jiang Zemin who established the Shenzhen Special Economic Zone and the Shanghai Pudong New Area respectively.

Mr Xi said the new area should be built into a “demonstration area for innovative development”. The area will help move functions from Beijing as the government moves offices outside the capital as well as acting as a model for the development of densely-populated areas.

BBMG describes itself as the largest cement manufacturer and supplier in the region covering Beijing, Tianjin and Hebei province.

Shares in BBMG jumped as much as 45.5 per cent during trading in Hong Kong. The stock is currently trading up 41.2 per cent at HK$4.56 a share, while the city’s benchmark Hang Seng index is up 0.3 per cent.

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