Chinese e-commerce and social media company Xiaohongshu, a startup also known as Little red Book, has paused its US initial public offering plans after China tightened rules on overseas listings. The news was reported by Bloomberg.
The platform, which is backed by Tencent Holdings Ltd. and Alibaba Group Holding, Ltd., is in talks with advisers on alternatives since Xiaohongshu would likely be subject to cybersecurity review as a result of Beijing’s proposed policy for firms listing internationally. It is possible that Xiaohongshu would list in Hong Kong.
Earlier this year, Xiaohongshu filed confidentially for a US IPO. The company was raising to aim 500 million dollars. Xiaohongshu has made no final decisions on their IPO plans. The company did not immediately respond for comment.