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Monday, Jul 14, 2025

Xiaohongshu's Meteoric Rise Sparks Surge in Related Share Prices

Xiaohongshu's Meteoric Rise Sparks Surge in Related Share Prices

Chinese Social Media App Tops U.S. App Store, Boosts Investor Confidence
BEIJING — Xiaohongshu, a Chinese lifestyle-focused social media app, has recently climbed to the number one position on the Apple app store's free apps chart in the United States as of Tuesday.

This milestone has not only highlighted the app’s growing international appeal but also triggered a notable reaction in the Chinese stock market, with shares linked to the platform experiencing significant gains in the morning trading session.

Foshan Yowant Technology Co., Ltd., Inly Media Co., Ltd., and Shenzhen Ellassay Fashion Co., Ltd., three companies associated with Xiaohongshu, all reached the daily limit of a 10 percent surge in their share prices.

Meanwhile, Shanghai Yaoji Technology Co., Ltd. recorded an 8.4 percent increase.

These share price hikes underscore the strong market confidence in Xiaohongshu's potential to capture a wider audience beyond its home market.

Xiaohongshu, known as 'RED' in English, was established in 2013 in Shanghai and has evolved into one of China's predominant social media platforms focused on lifestyle content.

The app functions similarly to Instagram, allowing users to share, discover, and purchase lifestyle products and services, which has cultivated an enthusiastic user base both domestically and internationally.

Amidst the app’s soaring downloads in the U.S., the broader Chinese stock market also showed positive momentum.

The Shanghai Composite Index rose by 1.75 percent, reaching 3,216 points, while the Shenzhen Component Index appreciated by 2.42 percent to settle at 10,033.42 points by midday.

Xiaohongshu's ascent in the U.S. market signifies a strategic move in expanding its global footprint, potentially paving the way for further international growth opportunities.

Its success also reflects on the growing trend of Chinese tech companies making an impact on the global stage, competing with established Western tech giants by offering innovative and culturally tailored digital experiences.

As Xiaohongshu gains traction in new markets, the app's popularity is not only reinforcing its standing in China but is also facilitating increased investor optimism about the prospects of China’s tech industry in the international technology and social media landscape.
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