Shares of Shenzhen high-tech companies rose Friday after the southern city won State Council approval to become the country's fourth national innovation demonstration zone.

Mayor Xu Qin announced the news at a Shenzhen government meeting Wednesday, four years to the day after the initial application, the Xinhua News Agency reported Thursday.

Shenzhen joined three other national innovation demonstration zones: Beijing Zhongguancun Science Park, Shanghai Zhangjiang High-tech Park and Wuhan East Lake High-tech Zone in Central China's Hubei Province.

The State Council aims to build Shenzhen into a "special technology zone," Xinhua said. The South China city was the country's first special economic zone in May 1980 at the launch of reform and opening.

"The newly approved zone with an area of 397 square kilometers is much bigger than the other three, so to encourage innovation Shenzhen authorities are likely to roll out a comprehensive reform package in government administration, education and financial sectors," Guo Wanda, deputy director of Shenzhen-based China Development Institute, told the Global Times Friday.

Shenzhen companies in strategic emerging industries including renewable energy, new materials and biotechnology will benefit most, Guo said.

Shares of new-energy auto firm BYD, industrial robot maker Jasic Technology and consumer electronics manufacturer Fenda Technology all rose in mainland stock market trading on Friday.

Although details have not yet been announced, Shenzhen will engage the same policies as the Zhongguancun National Innovation Demonstration Zone, according to the government meeting.

"There will be preferential tax policies for high-tech companies to award their research and development spending," Guo said.

"They will also have easier access to the capital market."