China's banking regulator said Tuesday it approved GMAC-SAIC Automotive Finance Co., General Motors Corp.'s (GM) auto-finance venture in China, to sell asset-backed securities in the local market.

"The ABS issuance could help develop and improve China's financial markets," the China Banking Regulatory Commission's Shanghai branch said in a statement.

The CBRC didn't provide further details about the ABS sale.

China began piloting the use of ABS on a trial basis in March 2005, but so far only a few banks, including China Development Bank and China Construction Bank Corp., as well as some state-owned debt-clearing agencies, have been allowed to offer the instruments.