BEIJING, Jan. 18, 2019 /PRNewswire/ -- Hexindai Inc.
(NASDAQ: HX) ("Hexindai" or the "Company"), a fast-growing consumer
lending marketplace in China,
today announced that it signed a cooperation agreement on
November 19, 2018 with Shanxi
Zhengxuan Finance Guarantee Co., Ltd. ("Shanxi
Zhengxuan"), which is controlled by the State-owned Assets
Supervision and Administration Commission of the State Council
(SASAC), to provide investors on the Company's platform with
insurance coverage that protects them against the potential default
risk of non-paying borrowers (the "Cooperation Agreement").
Starting from December 1, 2018,
all new loans facilitated on Hexindai's marketplace have required
borrowers to obtain insurance through Shanxi Zhengxuan. Borrowers
pay 4.5% and 0.5% of the principal amount to Shanxi Zhengxuan as
insurance policy premium and service fee, respectively. If a
default were to occur, Shanxi Zhengxuan will compensate the
investor with an amount up to the loan residual principal and three
months of accrued interest, in accordance with the terms and
conditions of the Cooperation Agreement and the agreements between
the borrowers and Shanxi Zhengxuan. Shanxi Zhengxuan files its
default information with the Credit Reference Center, the People's
Bank of China (CCRC), which is an
independent credit information service provider under the People's
Bank of China. The Center's
mandate is to establish, operate and maintain a national
centralized commercial and consumer credit reporting system. We
believe that borrowers generally do not want to build a negative
credit record on a national register and therefore its partnership
with Shanxi Zhengxuan could also help to deter fraud and defaults
to some extent.
On January 14, 2019, the China
Banking and Insurance Regulatory Commission (CBIRC") issued a
public report stating that it was imposing certain regulatory
measures on Changan Insurance, the Beijing-based property and liability insurance
company that had previously been providing liability insurance
coverage to investors on Hexindai's platform, because Changan
Insurance did not meet certain solvency and risk measures. Changan
Insurance has been barred from writing new insurance policies,
other than some automobile and liability insurance policies, and
setting up new branches until it increases its capital.
Mr. Xinming Zhou, Chief Executive
Officer of Hexindai, commented, "Our management team is constantly
seeking ways to improve user experience, expand confidence in our
platform among both borrowers and investors, and create
redundancies to protect against unforeseen events. We started
discussions with Shanxi Zhengxuan because we recognized that there
were growing risks in the market. We wanted to both diversify
insurance providers on our platform and add a second option so that
our users would have greater choice.
When we learned that Changan Insurance was facing challenges, we
were pleased that Shanxi Zhengxuan was able to provide coverage for
all new loans facilitated on our platform and that our constant
focus on risk mitigation was paying off. We believe that the
coverage that investors receive from Shanxi Zhengxuan will help
strengthen confidence in our platform, especially in the current
turbulent market environment."
About Hexindai Inc.
Hexindai Inc. (NASDAQ: HX) ("Hexindai" or the "Company") is a
fast-growing consumer lending marketplace based in Beijing, China facilitating loans to meet the
increasing consumption demand of the emerging middle class in
China. Hexindai provides borrowers
with convenient and ready access to credit through its online
marketplace. The Company offers borrowers a wide range of products
designed based on customer segmentation data and tailored to the
specific needs of the emerging middle class in China by matching them with investors seeking
various types of investment products with appropriate risk levels
and risk-adjusted returns. Hexindai's strong online and offline
user acquisition capabilities combined with an online platform with
extensive offline networks, an advanced risk management system, and
strong strategic cooperative relationships with a custodian bank
and an insurance company to safeguard investments, allows the
Company to generate higher customer satisfaction, reliance, and
realize faster growth in China.
Safe Harbor Statement
This announcement contains forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements are made under the "safe
harbor" provisions of the U.S. Private Securities Litigation Reform
Act of 1995. These statements can be identified by terminology such
as "will," "expects," "anticipates," "future," "intends," "plans,"
"believes," "estimates," "potential," "continue," "ongoing,"
"targets," "guidance" and similar statements. The Company may also
make written or oral forward-looking statements in its periodic
reports to the U.S. Securities and Exchange Commission (the "SEC"),
in its annual report to shareholders, in press releases and other
written materials and in oral statements made by its officers,
directors or employees to third parties. Any statements that are
not historical facts, including statements about the Company's
beliefs and expectations, are forward-looking statements that
involve factors, risks and uncertainties that could cause actual
results to differ materially from those in the forward-looking
statements. Such factors and risks include, but not limited to the
following: the Company's goals and strategies; its future business
development, financial condition and results of operations; the
expected growth of the credit industry, and marketplace lending in
particular, in China; the demand
for and market acceptance of its marketplace's products and
services; its ability to attract and retain borrowers and investors
on its marketplace; its relationships with its strategic
cooperation partners; competition in its industry; and relevant
government policies and regulations relating to the corporate
structure, business and industry. Further information regarding
these and other risks, uncertainties or factors is included in the
Company's filings with the SEC. All information provided in this
announcement is current as of the date of this announcement, and
the Company does not undertake any obligation to update such
information, except as required under applicable law.
For more information, please visit http://ir.hexindai.com/
For investor inquiries, please contact:
Hexindai
Ms. Daisy Wang
Tel: +86-10-5380-6196
Email: ir@hexindai.com
Christensen
In China
Mr. Christian Arnell
Phone: +86-10-5900-1548
E-mail: carnell@christensenir.com
In US
Mr. Tip Fleming
Phone: +1-917-412-3333
Email: tfleming@Christensenir.com
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SOURCE Hexindai Inc.