SHANGHAI, China — General Motors Corp. received approval to establish the first auto financing company in China that will be autonomous from the state banks that make up most of the market.

In a joint business venture, GM’s financial arm, General Motors Acceptance Corp., will partner with Shanghai Automotive Industry Corp. According to a Rueters report, an official with the China Banking Regulatory Commission said the newly formed finance company will have $60.4 million (500 million yuan) in registered capital.

Fewer than 20 percent of new cars sold in China are financed, Rueters reported, due to the lack of a national credit rating system and no laws to repossess cars from those who default on their loans.

GM announced that it expects up to half of all Chinese car buyers to finance their purchases in 10 years. This will become more feasible once a central credit rating agency is established.