(Yicai Global) Sept. 5 -- Guangpu Electronics plans to set up a subsidiary in Singapore as the light-emitting diode maker expands further into Southeast Asia and falls in line with China's Belt and Road Initiative.

The Xiamen-based firm will set up Sinpro Singapore with USD6.8 million in registered capital, it said in a statement yesterday. The unit will design, develop and make light-emitting diodes and related accessories, discrete semiconductor devices, optoelectronics equipment and other electronic products.

Shares in the company [SHE:300632] shot up on the news, rising 4.9 percent to CNY19.35 (USD2.71) as of 11.09 a.m.

The move is in response to China's Belt and Road program, a trade and infrastructure network drawn up by President Xi Jinping in 2013 spanning roads, rails, pipes and waterways across multiple continents, the statement said, adding that it will also aid the firm's expansion into Southeast Asia.

Founded in 1994, Guangpu mainly researches and builds key components for LED lights and their applications. One sector insider who has high expectations for flexible printed circuits believes the company plans to extend its business to include liquid-crystal displays, cells, battery management modules and other products to keep up with evolving technologies like fingerprint recognition in phones and large screens in vehicles.

Editor: James Boynton