BEIJING -- A new generation of short-haul aircraft will be granted production approval soon and enter the market in 2014, the China Securities Journal reported on Friday.

The MA700 aircraft, designed by the Avic Aircraft Co, is about to be approved by the Ministry of Industry and Information Technology after years of research and development, said a source quoted by the paper.

The turboprop jet will mainly be used for medium- and short-distance trips, said Geng Ruguang, vice general manager of Avic's parent company, the Aviation Industry Corporation of China.

Compared with its counterparts, the plane's travel costs will be 10 percent lower, while its carbon dioxide emissions will be 20 percent lower, Geng said.

As of the end of 2012, the company had received orders for 196 units from domestic and overseas buyers, with 75 units having already been delivered to airlines in 13 countries, a report from Everbright Securities Co showed.

Boosted by the news, the company's shares on the Shenzhen Stock Exchange jumped 2.37 percent to 11.64 yuan ($1.85) per share during Friday's morning trading.