China’s Xiaohongshu, the social media platform often compared with Instagram and known internationally as RedNote, is facing increased scrutiny over its potential Hong Kong listing plans after a former employee raised concerns about the company’s corporate structure, according to Reuters.
The platform has reportedly hired advisers for a possible Hong Kong initial public offering, although the company has denied reports that it had confidentially filed for a listing in late June. The dispute centres on Xiaohongshu’s use of a variable interest entity (VIE) structure, a model commonly adopted by Chinese technology companies seeking access to overseas capital markets.
