Xiaohongshu eyes $50B Hong Kong IPO after US plan stalled

Key Takeaways

• Xiaohongshu has hired Goldman Sachs and CICC for a potential Hong Kong IPO, possibly filing confidentially by June.
• The company's private valuation reached $50 billion in late 2025, up from $17 billion just a year earlier.
• A 2021 US IPO attempt collapsed after Chinese regulators raised concerns about the listing venue.

Xiaohongshu, the Chinese social media platform known internationally as RedNote, has hired Goldman Sachs and CICC to prepare for a potential Hong Kong initial public offering. The Shanghai-based company could file confidentially by the end of June and list as early as the second half of 2026, according to sources familiar with the matter.

The deal size remains undisclosed, but private secondary market trades valued Xiaohongshu at up to $50 billion toward the end of 2025. That figure represents a dramatic recovery from the $17 billion valuation reported in 2024, when investor confidence in Chinese tech had cratered.

Why did the US IPO fail in 2021?

Xiaohongshu quietly filed for a US IPO in 2021. The process never materialized. Chinese regulators raised concerns about the listing venue, part of a broader crackdown that year on private media and internet businesses amid rising US-China tensions. Beijing tightened supervision of offshore listings, effectively killing the American route.

The company's valuation had hit $20 billion during a 2021 funding round. By 2024, that number had shrunk to $17 billion. What changed? A flood of American TikTok users.

TikTok's near-ban rescued Xiaohongshu's valuation

In January 2025, the looming US ban on TikTok sent American users scrambling for alternatives. Many landed on Xiaohongshu. The platform's monthly active users have since surpassed 400 million. Investors took notice.

One source told reporters that Xiaohongshu's projected profit for 2026 could reach $3 billion. If accurate, that number would justify the steep valuation increase and make the company one of China's most profitable social platforms.

What makes Xiaohongshu different from Instagram?

Founded in 2013, Xiaohongshu translates to "little red book." The app resembles Instagram on the surface: users share photos, videos, and text about their lives. But the underlying architecture serves a different purpose.

Xiaohongshu functions as a search engine for lifestyle decisions. Young Chinese users turn to it for travel tips, restaurant recommendations, and product reviews. The platform's "grass-planting" culture, where users share authentic recommendations that influence purchases, makes it a hybrid of social media and e-commerce that Western platforms have struggled to replicate.

This search-first design drives higher purchase intent than ad-based engagement. Users arrive looking for answers, not entertainment. That distinction matters for advertisers and, by extension, for IPO valuations.

What regulatory hurdles remain?

The Hong Kong listing still requires approval from the China Securities Regulatory Commission. Sources say that decision could take months. Beijing's track record on tech IPO approvals has been unpredictable since the 2021 crackdowns.

None of the parties involved have confirmed the deal publicly. Goldman Sachs declined to comment. CICC did not respond to requests. Xiaohongshu itself stayed silent.

Community skepticism on international expansion

Online discussions on Hacker News and Reddit have focused on what a Hong Kong listing signals for international ambitions. Some users praise the platform's "utility-first" approach as a welcome change from engagement-driven Western social media. Others question how Xiaohongshu will handle data privacy and content moderation requirements outside mainland China.

A Hong Kong listing would give the company access to international capital without subjecting it to US regulatory scrutiny. Whether that capital translates into genuine international expansion remains an open question.

Timeline: Xiaohongshu's IPO journey

Frequently Asked Questions

What is Xiaohongshu's current valuation?

Private secondary market trades valued Xiaohongshu at up to $50 billion toward the end of 2025, a sharp increase from the $17 billion reported in 2024.

When could Xiaohongshu go public in Hong Kong?

The company could file confidentially by June 2026 and list as early as the second half of the year, pending CSRC approval.

Why did Xiaohongshu abandon its US IPO?

Chinese regulators raised concerns about the US listing venue in 2021, during a broader crackdown on offshore listings amid US-China tensions.

How many users does Xiaohongshu have?

The platform has over 400 million monthly active users as of 2025.

What is RedNote?

RedNote is the international name for Xiaohongshu, a Chinese social media platform that combines lifestyle content with e-commerce features.

Source: Tech-Economic Times / ET