Shenzhen will host business software maker Oracle's first research and development (R&D) centre in China.
The facility will initially employ 100 people after it opens in May, but will expand as the world's second-largest software firm puts more emphasis on Asia, its fastest-growing market.
Derek Williams, executive vice-president of Oracle's Asia-Pacific division, said several other development centres would eventually open in China, but that Shenzhen was chosen first because of its vibrant economy, mainland connections and proximity to Hong Kong.
'Shenzhen is a very go-ahead area,' he said. 'They have a go-ahead mayor and organisation there with tremendous enthusiasm and commitment. We expect to play an important role in China by expanding into one of the country's most rapidly growing trade zones.'
Hong Kong was passed over for the facility because of the relatively high cost of doing business and Oracle's desire to be on the mainland, where the lion's share of its Greater China customers reside.
'Hong Kong is not on the mainland and we wanted to be where the action is,' he said.