HONG KONG, July 9 (Reuters Breakingviews) - The country’s hottest e-commerce craze is souring fast. Tongcheng Shenghuo, which operates a group-buying app for fresh produce and other daily necessities, has decided to file for bankruptcy, according to its social media account. Boss He Pengyu blamed larger rivals including the $210 billion food delivery company Meituan (3690.HK) and e-tailer JD.com (9618.HK), for piling into the sector and sparking off cash-burning subsidy wars. The three-year-old company was last valued at $1 billion with 80,000 distribution centers across China. Tongcheng Shenghuo recruited community leaders to organise bulk purchases online and handle deliveries. It’s a business that has attracted nearly $3 billion in funding last year alone, according to Chinese data provider Qichacha. More trouble is brewing across the broader online grocery sector. Regulators are clamping down on practices such as price fixing and dumping. The disappointing performance of recently-listed Dingdong Maicai (DDL.N) and MissFresh (MF.O) read more shows the frenzy may be nearing the end of its shelf life. (By Yawen Chen) On Twitter http://twitter.com/breakingviews Capital Calls - More concise insights on global finance: Telenor hangs up on Myanmar read more Chinese IPO fallout is just beginning read more Gates Foundation puts purpose ahead of personality read more Green debt issuers getting an easy ride read more Knorr Bremse pays dearly for rash M&A read more