(Yicai Global) Dec. 29 -- Chinese fintech giant Ant Group will close its healthcare mutual aid platform as regulators have toughened their stance on the overextension of internet giants into outlying fields that lack regulation. Meituan, Tencent-backed Waterdrop, and Xiaomi have already shut similar platforms this year.

Xianghubao will stop operations on Jan. 28, it said yesterday in a pop-up app message. Existing members will no longer be able to share their balance with other users’ medical costs from today, it added, noting that members diagnosed with eligible diseases before Jan. 28 will still be able to apply for funds within 180 days from the day of the diagnosis.

More than 10 mutual aid platforms have closed so far in 2021 due to a regulatory crackdown on the fintech sector. Lifestyle services provider Meituan shut Meituan Huzhu on Feb. 1, Waterdrop and Xiaomi’s Tianxing Finance ceased at the end of March and on May 14, respectively.

China does not have a clear regulatory system for the online mutual aid business model and, with the expansion of the industry’s scale, risks swell causing concerns, Xiao Yuanqi, vice chairman of the China Banking and Insurance Regulatory Commission, told reporters in April. Its development needs to be standardized, Xiao said, adding that if mutual aid deviates from its essence and engages in financial and insurance-related activities, it needs to be corrected.

Launched at the end of 2018, Xianghubao uses crowdfunding to help members pay medical bills for critical illnesses. It can offer up to CNY300,000 (USD47,100) per person, according to its website, and has raised nearly CNY26 billion (USD4.1 billion) in total and helped more than 179,000 members.

As the number of members diagnosed with critical diseases rose, almost 75 million members shared a medical cost of CNY91 (USD14.29) on average so far this year, up from CNY29 (USD4.55) last year, per the platform’s data.

Editors: Dou Shicong, Futura Costaglione