Benzinga | Dec 28, 2021 07:47AM EST

Alibaba's Fintech Affiliate Shuts Mutual Aid Platform

Alibaba Group Holding Ltd (NYSE:BABA) backed fintech, Ant Group Co, looks to shut down its "mutual aid" healthcare platform Xianghubao, Bloomberg reports.

* The initiative follows moves by other internet giants, including Meituan (OTC: MPNGF) (OTC: MPNGY) and Waterdrop (NYSE: WDH) amid China's crackdown on the once-booming fintech business.

* Related Content: Alibaba Needs To Pay More Heed As China Ramps Up Crackdown On Fintech

* Xianghubao, which uses crowdfunding to help pay medical costs for critical illnesses, will cease operations on January 28 to protect the interests of all participants in the longer run.

* In January, the banking and insurance regulator said it was monitoring risks at firms engaged in crowdfunding in the healthcare sector and would take "corresponding measures" shortly after Meituan, whose primary business is food delivery, closed its platform.

* Ant said the same day that the chief architect of Xianghubao had resigned. Waterdrop closed its mutual aid platform in March.

* Price Action: BABA shares traded higher by 0.27% at $116.91 in the premarket session on the last check Tuesday.