Xiaohongshu's HK IPO plans face scrutiny after employee complaint

Xiaohongshu, China's Instagram-like platform, faces scrutiny over a potential Hong Kong IPO after a former employee filed a complaint about its corporate structure, highlighting ambiguity in its variable interest entity (VIE) setup. The company denied reports of a confidential filing and said the complaint did not hinder its IPO process. However, legal experts say the issue must be addressed for any future listing.