Chinese regulators have suggested Xiaohongshu Technology consider including a state-owned investor to simplify approval for a potential public listing.

It’s unclear if Xiaohongshu will follow this recommendation as discussions continue, with no comments from the China securities regulatory commission or the company.

Xiaohongshu, China’s answer to Instagram, has gained global popularity and ranks among the top free apps on app store in the US, especially as TikTok faces regulatory issues.

This regulatory push marks a shift from previous crackdowns, as China seeks to boost tech sectors like AI, with Xiaohongshu planning a share sale in Hong Kong.

Recent Xiaohongshu developments