Xiaohongshu-related Chinese shares continue to surge

BEIJING - Share prices related to Xiaohongshu surged in the morning session on Wednesday after the Chinese Instagram-style app reached the top of the Apple App Store chart in the United States.

Investors appear to be focusing on companies with business models that could align with Xiaohongshu's ecosystem. Hangzhou Onechance Tech Corp and Inly Media Co Ltd were among the companies that saw their stocks surge.

Hangzhou Onechance offers automotive e-commerce services across platforms like Xiaohongshu, while Inly Media provides data-driven marketing solutions for brands on the platform.

Based in Shanghai, Xiaohongshu was founded in 2013 and has grown into one of China's most popular lifestyle social media platforms. It has not yet gone public.

Chinese internet users on the platform have noticed a sudden influx of new international users, many of whom claim to have migrated from TikTok due to concerns about a potential US government ban within the week.

This surge in activity has propelled Xiaohongshu to the top of the US Apple App Store download rankings in just a few days.