Chinese regulators have informally indicated to Xiaohongshu Technology, owner of the Rednote app, that bringing in a state-owned investor could help make approvals smoother for any future listing, people familiar with the matter said.
It’s unclear if Xiaohongshu will decide to act on the suggestion, the people said, asking not to be identified because the deliberations are ongoing and private.
The company’s investors include Alibaba (9988), Temasek and Tencent (0700). Others are considering selling some of their holdings, drawing interest from stakeholders including Hillhouse Investment and Hongshan Capital, formerly Sequoia Capital China, as well as potentially Temasek.
With uncertainty shrouding TikTok’s future in the US, social media users have been flocking to Xiaohongshu, a Chinese Instagram-like service. It is one of a handful of Chinese internet unicorns yet to debut on the stock market.
Xiaohongshu has become one of the most downloaded free apps on Apple's iPhone charts in the US. It is also on track to post net income of more than US$1 billion (HK$7.8 billion) for 2024, Bloomberg News has reported. Its users can share photos, videos and other media, as well as check reviews and shop.
Xiaohongshu’s biggest investors are in talks to sell shares at a valuation of at least US$20 billion, people familiar with the matter have said. Underwriters have been selected for a possible share sale in Hong Kong, previous reports showed.
BLOOMBERG
Xiaohongshu’s investors include Alibaba, Temasek and Tencent. BLOOMBERG
