Stock prices linked to Xiaohongshu (dubbed RedNote) surged early Wednesday, after the Chinese Instagram-like app rose to the top of Apple’s U.S. App Store rankings.
Investors appear to be focusing on companies whose business models could align with the Xiaohongshu ecosystem. Hangzhou Onechance Tech Corp and Inly Media Co., Ltd. are among the companies that have seen their shares soar.
Hangzhou Onechance offers automotive e-commerce services on platforms such as Xiaohongshu, while Inly Media provides data-driven marketing solutions for brands on the platform.
Headquartered in Shanghai, Xiaohongshu was founded in 2013 and has become one of China’s most popular lifestyle social media platforms. It is not yet listed on the stock exchange.
Chinese internet users using the platform have noticed a sudden influx of new international users, many of whom say they migrated from TikTok due to fears of a potential ban from the US government within the week.
This renewed activity propelled Xiaohongshu to the top of the US Apple Store download rankings in just a few days.
