After failing to gain significant market share in China's consumer auction market, eBay will join in creating a site in its place, according to The Wall Street Journal.

Rumours have been circulating for months that eBay was preparing to exit the Chinese market, but were readily denied by the company. eBay bought Chinese auction site Eachnet in 2003 for $150m. Eachnet was founded in Shanghai in the late 1990s by local entrepreneur Shao Yibo, and its Chinese name, 'Yi Qu', still represents the site in China.'s TaoBao site leads the consumer auction market, with the company claiming 30 million registered users and as much as 70 percent market share.