Goldman Sachs announced Thursday that it has been approved by Chinese authorities to set up a joint-venture investment bank in partnership with Beijing Gao Hua Securities Co. Goldman will own 33% of the joint venture to be named Goldman Sachs Gao Hua Securities Co., and the local bank will keep the remaining 67%.

The China Securities Regulatory Commission has authorized the bank to underwrite both class-A shares and yuan-denominated corporate and convertible bonds.

The venture will represent one of the first founded in Cina since the government agreed to open up its financial-services market after the country joined the WTO in 2001.

The new bank will face competition from China International Capital Corp., joint venture established by Morgan Stanley and China Construction Bank that is now the leading underwriter of initial public offerings by Chinese companies on foreign stock markets.

BNP Paribas SA of France and CLSA, the Asian unit of French bank Credit Agricole SA also have set up joint ventures in China.