Xin Lang Cai Jing·2025-09-23 12:44Core Viewpoint - Chinese internet financial companies are accelerating their overseas expansion in credit business, particularly in markets like Mexico and Indonesia, driven by high credit demand and favorable regulatory environments [1][4][11]. Group 1: Market Opportunities - Companies like Xinyi Technology and Lexin have already established overseas credit operations, with Xinyi's international business transaction volume exceeding 3.2 billion yuan, a 39% year-on-year increase [5]. - The overseas markets of Indonesia and Mexico are attractive due to their large populations and high credit demand, with Indonesia's population at 271 million and Mexico's at 128 million [10][11]. - The financial services landscape in these countries shows a significant gap in banking services, leading to a high demand for internet credit [12]. Group 2: Business Performance - Xinyi Technology reported that as of June 30, 2025, it had 42.8 million registered users in international markets, a 47.1% increase year-on-year, and an outstanding loan balance of 2.1 billion yuan, up 50% [5]. - Lexin's overseas customer acquisition cost decreased by 19% quarter-on-quarter, indicating improved operational efficiency [5]. - JiaYin Technology highlighted a 200% year-on-year increase in loan amounts in Indonesia, showcasing strong growth in overseas partnerships [6]. Group 3: Competitive Landscape - The competition in overseas markets is intensifying, with local financial institutions and other Chinese companies vying for market share [22][24]. - Chinese companies leverage their digital capabilities to offer faster and more efficient loan processes compared to local players, which often have cumbersome procedures [23][24]. - The bad debt rate in overseas markets is significantly higher than in China, with rates around 13%-14% compared to Xinyi's 1.92% and Lexin's 3.1% [20][21]. Group 4: Strategic Directions - Companies are focusing on obtaining local financial licenses as a critical step for market entry, with varying levels of difficulty across countries [14][15]. - The trend of overseas expansion is expected to continue, with companies like Xinyi aiming for international business to account for 50% of their revenue by 2030 [9]. - Emerging markets remain a key focus, with companies exploring opportunities in regions like South America and the Middle East [26].