Chinese lifestyle and video-sharing platform Xiaohongshu (also known as RED) is planning to list on the Hong Kong Stock Exchange as early as the end of this year, according to a report by The Wall Street Journal on June 17. The company's major investors are seeking a valuation of over $70 billion, significantly higher than its recent valuation of over $50 billion in private secondary market transactions.
Founded in 2013 by Mao Wenchao and Qu Fang, Xiaohongshu started as a shopping guide app and has evolved into one of China's most influential social media platforms, known for user-generated content covering beauty, fashion, travel, and lifestyle. The platform has built a unique 'grass-planting' (zhong cao) culture that drives consumer purchasing decisions. The report estimates that Xiaohongshu's net profit for this year will exceed $3 billion, reflecting its strong revenue growth and monetization capabilities.
The potential IPO is among the most anticipated in Hong Kong, as many Chinese tech companies have chosen to list in the city. A successful listing would provide Xiaohongshu with additional capital to expand its business and consolidate its position in the competitive social media market.