BMW AG has submitted applications to Chinese regulators to jointly set up an auto financing company with its joint venture partner Brilliance Auto, and is expecting the auto financing unit to begin operation in the first half of 2010.

BMW Automotive Finance (China) Ltd. Chief Executive Kirk Cordill told Dow Jones Newswires on Friday that the two parties had agreed to build BMW Automotive Finance (China) Co last October. The joint venture will share the profits according to their ownership stakes.

BMW will hold a 58% stake in the financing venture, while its Chinese joint venture, BMW Brilliance China Automotive Ltd., will hold 42%, which means Brilliance Auto will hold 21% stake in the finance unit.