Just two weeks after ride-hailing giant Didi was taken off Chinese app stores for breaching user privacy laws after a high-profile US initial price offering, one of China’s most popular social media and ecommerce platforms Xiaohongshu (aka Red, or 小红书 in Chinese) has shelved its own US listing plans.
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According to Chinese tech and business news site TMTPost, the popular social ecommerce site will put its plan to get listed on the US stock market on hold for now.
Just a few hours after the news was reported, it became one of the trending topics on Chinese microblogging site Weibo. The hashtag #Xiaohongshu suspends its US listing plans# has garnered over 100 million views on the platform.
Chinese netizens responded to the news with mixed feelings, but most made reference to the recent Didi controversy.
“Didi is gone, (so) Xiaohongshu feels intimidated,” wrote the most upvoted comment under a related post.
One other user cited a Chinese traditional proverb to praise Xiaohongshu’s decision, “Those who suit their actions to the time are wise.”
Earlier in April this year, Xiaohongshu was reportedly planning to submit an IPO filing in the US.
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As of the writing of this article, Xiaohongshu has yet to make a public statement about its decision.
Founded in 2013, Xiaohongshu is one of the fastest growing startups in China. Now, eight years after it was founded, the UGC (user generated content) site has reached over 100 million monthly active users.
With 83.31% of people on the app between the ages of 18-34, the app is very popular among young millennials and Gen Z in China, and has played a significant role in China’s influencer (or wanghong) culture.
The news comes as more and more Chinese startups are weighing up the ramifications of their US IPO plans, amidst the country’s recent regulatory crackdown on tech companies.
In just the past few weeks, Lalamove, a truck rental and delivery service provider, and Keep, China’s largest mobile sports platform, as well as the audio and podcast site Ximalaya, have reportedly also been considering a shift in their US IPO plans.
Cover Image: Thana Gu
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