According to a report by the Wall Street Journal on June 17, Xiaohongshu (also known as Little Red Book), China's lifestyle and video-sharing platform, is preparing for an initial public offering in Hong Kong as early as the end of this year. Major investors are seeking a valuation of over $70 billion, following recent private secondary market transactions that valued the company at more than $50 billion.
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. It focuses on user-generated content covering beauty, travel, fashion, and lifestyle, attracting a large base of young users.
The platform is expected to generate net profit exceeding $3 billion this year. If successful, its listing would mark another major Chinese internet company tapping into Hong Kong's capital market, following the footsteps of Kuaishou and ByteDance.