In Depth: Ex-Employee Dispute Looms Over Xiaohongshu’s IPO Prospects

The public airing of a legal dispute between Xiaohongshu and a former employee over his dismissal and stock options has cast a shadow over any future Hong Kong listing by the Chinese social platform creator. 

Chen Hao, a former employee of Xiaohongshu Technology Co. Ltd., said in a June 29 social media post that he had filed complaints with Hong Kong's stock exchange and securities regulator, arguing that Xiaohongshu’s position in their litigation could raise disclosure and compliance concerns in any future listing.