Chinese regulators approved Goldman Sachs Group Inc.’s application to take full ownership of its local securities business, another step in China’s gradual opening of its financial system to major players from the U.S. and elsewhere.

Goldman had sought approval in December to increase its stake in the business, and said Sunday that China’s financial markets regulator, the China Securities Regulatory Commission, had given its assent.

“This...

Chinese regulators approved Goldman Sachs Group Inc.’s application to take full ownership of its local securities business, another step in China’s gradual opening of its financial system to major players from the U.S. and elsewhere.

Goldman had sought approval in December to increase its stake in the business, and said Sunday that China’s financial markets regulator, the China Securities Regulatory Commission, had given its assent.

“This marks the start of a new chapter for our China business following a successful 17-year joint venture,” Goldman Chief Executive David Solomon, Chief Operating Officer John Waldron and Chief Financial Officer Stephen Scherr wrote in a joint statement.

The securities unit, Goldman Sachs Gao Hua Securities Co., will be renamed Goldman Sachs (China) Securities Co.

Write to Quentin Webb at quentin.webb@wsj.com