Hexindai HX Stock News

Hexindai Inc – ADR (NASDAQ: HX) is running for the top early on in the market this morning, trading on gains of more than 200%. The gains come after the company announced the launch of a social e-commerce platform. Here’s what’s happening:

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HX Stock Runs For The Top On Platform Launch

In the press release, Hexindai said that it launched Xiaobai Maimai. The platform is a membership-based social e-commerce mobile platform offering high-quality and affordable branded products.

In the release, HX said that its new platform leverages its integrated buyer resources to select and source goods globally. The platform also has a membership rating system, rewarding users with a commission for every purchase, share or recommendation of a product made to friends.

In the release, the comapny said that the new platform will offer a wide variety of high-quality products in the household goods, food and drinks and luxury categories. In a statement, Mr. Xiaobo An, Founder, Chairman and CEO at HX, had the following to offer:

We launched Xiaobai Maimai to diversify our revenue streams and deepen the transformation of our business. We believe social e-commerce has enormous growth potential as consumer behavior increasingly shifts from offline to online purchases and demand grows from China’s emerging middle class. By integrating our extensive buyer resources from all over the world, we are able to source a diverse array of superior high-quality products at competitive prices.

Xiaobai Maimai is directly supported by a dedicated operations team focused on enhancing the user experience and a customer service team which offers concierge-level services to our members. This allows us to guarantee product quality and offer a personalized customer experience, which in-turn drives the sharing and recommendation of our products and services. This social e-commerce model not only benefits customers with commissions for shopping and sharing products, but also helps reduce marketing expenses. Leveraging our strong user acquisition capabilities and deep experience in managing online and offline operations, Xiaobai Maimai will position us to further drive the transformation of our business and support sustainable growth going forward.

Why Investors Are So Excited

First and foremost, the launch of the new platform is great for Hexindai and its investors since it will open the door to a new revenue stream that has serious potential. Especially considering the fact that consumers around the globe are still fearful of leaving their homes in the face of the COVID-19 pandemic.

However, the gains go beyond that here. I believe that with the tremendous gains that we’re seeing today, a short squeeze is taking place. Prior to the news, heavy short interest has held the stock down as of late. However, the positive news sent the stock in the upward direction, sending shorts on a race to cover and compounding gains.

While this run isn’t likely to last forever, there’s a good chance it’s not over yet, making HX a stock that’s well worth following.

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