- The social media platform said circulating reports about a public listing are “false”
- The denial follows weeks of market speculation and regulatory complaints that fueled questions over the company’s IPO timeline
Xiaohongshu on July 22 denied recent reports that it was preparing for an initial public offering, saying that “all circulating information related to an IPO is untrue.”
Rumors of a listing first surfaced in mid-June, when Bloomberg and other media outlets reported that the company planned to confidentially file for a Hong Kong IPO by the end of the month at a valuation of $30 billion to $50 billion.
Inconsistencies
Around the same time, former employee Chen Hao submitted whistleblower complaints to Hong Kong’s stock exchange and securities regulator, alleging inconsistencies in the company’s disclosures regarding its variable interest entity (VIE) structure.
A separate complaint was later filed with the China Securities Regulatory Commission, fueling market speculation that the listing process had encountered regulatory hurdles.
Xiaohongshu’s statement, issued more than a month after the rumors began circulating, addressed only the IPO speculation and did not comment on the allegations.
Why it matters for global readers
Whether Xiaohongshu is approaching a public listing will ultimately depend on how it addresses any regulatory scrutiny arising from the complaints and whether it can present a governance structure that satisfies investors.
As one of the world’s few major internet platforms with more than 400 million monthly active users that remains privately held, its eventual path to the public market is likely to be closely watched as a barometer for the valuation of China’s next generation of consumer internet companies.
