Xiaohongshu targets $70B valuation in Hong Kong IPO push

Crypto Insight Summary: * Chinese social media platform Xiaohongshu (RedNote) is preparing for a Hong Kong IPO that could value the company at more than $70 billion. * Goldman Sachs and CICC have been tapped as advisers, with the listing potentially taking place in the second half of the year. * Strong profit growth and more than 400 million monthly active users have fueled investor optimism and a sharp rebound in the company’s valuation. Chinese social media platform Xiaohongshu, also known as RedNote, is getting ready for an IPO in Hong Kong valued at over $70 billion. IPOs in the city have already raised more than HK$140 billion ($22.8 billion) in 2026, according to Hong Kong Financial Secretary Paul Chan, keeping it atop global rankings for listing volumes. Major investors are pushing for a valuation above $70 billion, a steep jump from the roughly $50 billion implied by recent private secondary share transactions. That pricing is a remarkable turnaround since Xiaohongshu’s valuation stood at $20 billion in 2021 but had reportedly plunged to $17 billion in 2024 before rebounding sharply. [According to reports](https://www.wsj.com/tech/chinas-instagram-readies-hong-kong-ipo-that-could-see-it-valued-at-over-70-billion-879222fa), Xiaohongshu might earn more than $3 billion by 2026 from a net income of more than $2 billion last year. This is a swift increase in profit following its very first profit of $500 million out of $3.7 billion total income in 2023. Founded in 2013, Xiaohongshu started as an app that provided shopping tips for Chinese customers purchasing foreign goods. Crypto Insight Analysis: Direction: Neutral Impact: Minor Impact Horizon: Short-term (1-3 days) Reasoning: Xiaohongshu's IPO may boost sentiment for Chinese tech stocks but has limited direct impact on crypto markets.