Yixin Steers Away From Young Joint Venture To Stay Focused On China Auto Market

Key Takeaways:

• Yixin will sell its 49% stake in a 2-year-old joint venture to partner Qingdao Caitong, which wants to expand into areas beyond the venture’s original auto leasing services
• Yixin’s auto financing business is growing despite an unsteady Chinese car market, fueled by booming demand for electric vehicles

By Warren Yang

Reckless expansions into areas outside your core business may sometimes yield quick profits, but many times also end in disappointment. Online auto loan facilitator Yixin Group Ltd. (2858.HK) appears well aware of the perils of such missteps with its latest decision to pull out of a young joint venture that was getting steered away from its original business scope.