SHENZHEN -- DHL Global Forwarding, a subsidiary of leading global logistics company Deutsche Post DHL, will set up an integrated logistics center in South China's city of Shenzhen, according to an agreement signed Tuesday.

The center will be located in the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, which was given approval by the State Council in late June to enjoy a series of preferential financial policies.

DHL will take advantage of the zone's preferential policies, world-class logistic facilities and strategic location to innovate its modern logistics and supply chain business in South China, according to the agreement signed between DHL and the Qianhai zone authority.

DHL is expected to create a regional shipping hub and distribution center in Qianhai and will look at the possibility of establishing a regional business headquarters there.

The Qianhai zone, a 15-km stretch of reclaimed land in Qianhai Bay, is in western Shenzhen and located near Hong Kong and Macao.

The central government aims to build Qianhai into a "pioneering zone" to forge closer cooperation between Hong Kong and the mainland. The area will be used as a pilot zone for financial sector reforms after an array of steps taken by the government to boost the international use of the yuan, China's currency.