Xiang Hu Bao’s number of users has already surpassed 100 million.
Chinese fintech company Ant Group will close its health insurance platform with Xiang Hu Bao. This was reported by the South China Morning Post (SCMP) with a link to a message sent to users of the platform.
The platform will cease operations on January 28, 2022, Ant Group said in a statement. According to the newspaper, the company closed the service due to “continuous pressure on the fintech sector in China.”
The health insurance service with Xiang Hu Bao was launched in 2018 as part of the Alipay fintech project. To date, the number of registered users on the platform has reached 100 million. According to the newspaper, Xiang Hu Bao has become the world’s largest self-help platform. This service helps low-income people to unite to buy insurance policies. Over the past 3 years, 180,000 people have benefited from affordable medical care.
In particular, search engine Baidu also closed the co-insurance platform in August 2020. 500 thousand users registered there.
As a reminder, Ant Group is restructuring its activities under regulatory oversight following the cancellation of its IPO in November 2020. Market participants believe that the authorities are starting to put pressure on the Ant Group, including because the company’s founder, Jack Ma, criticized their actions.
To continue preparations for the IPO, company representatives must agree on a business restructuring plan with the authorities and make a number of other concessions. In particular, the Ant Group team decided to share user data with Chinese regulators. Ant Group was also forced to split Jiebei and Huabei online loan services into two brands.
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