China's banking regulator gave approval Dec. 29 to three car giants to set up auto financing operations in China, which could give a further boost to what is already the world's fastest-growing major car market, according to a Reuters report.

General Motors Corp., Volkswagen AG and Toyota Motor Corp. have all been given the nod, the China Banking Regulatory Commission said in a statement on its Web site, www.cbrc.gov.cn, Reuters said.

Once the three companies have set up their operations, which is expected in the first half of next year, they will need further approval to begin offering the loans to customers in China, the regulator added, according to Reuters.

Reuters said Toyota and Volkswagen are planning to set up first in Beijing and GM in Shanghai, according to the regulator.

GM, Volkswagen and Toyota executives were not immediately available to comment, according to Reuters.

GM's auto financing unit -- General Motors Acceptance Corp. (GMAC) -- will team up with an arm of its longstanding Chinese partner Shanghai Automotive Industry Corp., while Volkswagen Financial Services and Toyota Financial Services will go it alone, the regulator said, according to Reuters.