KUALA LUMPUR, Dec 16 (Bernama) -- Bursa Malaysia extended its positive performance, closing higher for a fourth consecutive session, supported by improving local market sentiment underpinned by a firm domestic macroeconomic backdrop. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 4.59 points, or 0.28 per cent, to 1,648.31, from Monday’s close of 1,643.72. The index had opened 0.95 of a point lower at 1,642.77, and moved between 1,636.50 and 1,648.71 throughout the trading session However, on the broader market, decliners beat gainers 699 versus 408. A further 520 counters were unchanged, 1,149 untraded and 12 suspended. Turnover rose to 2.59 billion units worth RM2.27 billion from 2.50 billion units worth RM2.16 billion on Monday.
Key Takeaway
Xiaohongshu’s valuation surged 19% in three months to US$31B, fueled by investor appetite for a TikTok alternative and renewed confidence in Chinese startups amid government support for private firms.
Valuation Highlights
Current Valuation: US$31B (as of June 2025)
Previous Valuation: US$26B (March 2025)
Growth: +19% in just three months
Source: GSR Ventures fund portfolio filings reviewed by Bloomberg
Drivers Behind the Surge
TikTok Risks: U.S. ban threats push investors to back alternatives.
Policy Support: Beijing’s pro-private sector stance revived sentiment.
Dominance in Fund: Xiaohongshu made up 92% of GSR’s fund assets as of June.
Investor Rotation: New LPs included LGT Capital Partners and Merit Asset Management; some StepStone funds trimmed positions.
Company Snapshot
Founded: 2013 by Charlwin Mao Wenchao & Miranda Qu Fang
Global Branding: Known as RedNote in the U.S.
Positioning: Marketed as China’s Instagram equivalent
Backers: ZhenFund, Tiantu Capital, GGV Capital (now split into Granite Asia & Notable Capital)
Growth Path: Anticipation building for a potential IPO
GSR Ventures Context
AUM: US$3.7B
Track Record: Backed >100 companies, including Didi Global and Horizon Robotics
LP Base: Includes major U.S. university endowments and global pensions
Market Implications
Tech Ecosystem: Xiaohongshu’s rise highlights sustained global investor appetite for China’s consumer tech sector.
Competitive Landscape: Emerging as a credible challenger to TikTok, especially if U.S. restrictions accelerate.
Exit Strategy: IPO speculation could provide liquidity for early backers.
Investor Watch
Private Equity/VC: Strong secondary market demand signals robust appetite pre-IPO.
Public Markets: An eventual Xiaohongshu IPO could be one of China’s largest tech listings in years.
Risk Factors:
Regulatory uncertainty in China’s internet sector.
U.S.-China tensions impacting global expansion.
High concentration of exposure in single-asset funds (e.g., GSR).
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