HONG KONG, Oct 18 (Reuters) - China has approved two more insurance units to be set up by BNP Paribas and Prudential Financial in a move to further open up the local insurance market to foreign companies.

China's National Financial Regulatory Administration $(NFRA.UK)$ has approved the creation of a joint venture between BNP Paribas and Volkswagen Financial Service, Li Yunze, the head of the regulator said on Friday at a financial forum in Beijing.

U.S.-based Prudential Financial has been approved to set up an insurance asset management firm in Beijing, Li said.

(Reporting by Selena Li; Editing by Christian Schmollinger)

((Selena.Li@thomsonreuters.com; +852 39525868;))