Ant Group shuts mutual aid platform Xianghubao amid crackdown

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Ant Group Co stated it’s going to shutter its “mutual aid” health-care platform Xianghubao, following related strikes by different Internet giants together with Meituan and Waterdrop Inc, amid China’s crackdown on the once-booming fintech enterprise.

Xianghubao, which makes use of crowd funding to assist pay medical prices for crucial sicknesses, will stop operations Jan 28 to guard the pursuits of all individuals within the longer run, in response to an emailed assertion. Existing members will not bear claims settlement prices, it stated.

The banking and insurance coverage regulator stated in January it was monitoring dangers at corporations engaged in crowd-funding within the health-care sector and would take “corresponding measures,” shortly after Meituan, whose primary enterprise is meals supply, closed its platform. Ant stated the identical day that the chief architect of Xianghubao had resigned. Waterdrop closed its mutual aid platform in March.

Internet mutual aid platforms have the options of economic insurance coverage however are unregulated, and their dangers are “not negligible” as they’ve large numbers of customers, the China Banking and Insurance Regulatory Commission stated in a coverage analysis paper posted on its web site in September 2020.

China has prolonged a yearlong marketing campaign to curb the breakneck development of its Internet sector and what Beijing has termed a “reckless” growth. The authorities unveiled sweeping rules over the previous week governing abroad share gross sales, tightening scrutiny on their worldwide debuts within the wake of Didi Global Inc’s controversial New York itemizing. – Bloomberg



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