BEIJING - Chinese financial authorities have approved the application by a joint venture of American Express for setting up a bank card clearing and settlement institution, a step forward in the country's financial opening up.

The New York-based multinational will enter China's bank card clearing market through its joint venture in China, Express (Hangzhou) Technology Service Co.

Preparation for the new institution should be completed in a year, and then an application should be filed with the central bank for opening of business operation, according to a statement of the People's Bank of China (PBOC) Friday.

The approval comes as an important step in the opening of China's bank card market, the PBOC said, stressing it will facilitate diversified and differentiated services, foster a level playing field and improve services in the market.

The central bank said it will continue to push forward the entry of bank card clearing institutions into the Chinese market in an orderly manner.