You are absolutely right, hmmm. As a small cap stock, XIN is subject to various short-term special movements, which normally come with extraordinary high volume. Once the volume is back to normal, XIN will be the normal XIN again.
Only long-term positive fundamental change help XIN outperform for more than a month. Look at 2009, when the Chinese government announced the huge fiscal stimulus, which helped the real estate industry tremendously, XIN went up from $1.7 to above $7 with normal volume. The theory is simple. If the company's future is brighten by factors accepted by most people, very few people are willing to sell at low price again. So, the price goes up with normal trade volume. On the other hand, short-term significant price movement with virtually no fundamental improvement needs high volume, a lot of time caused by flip transactions, to push the stock higher to absorb sell orders.