STOCKS | Xiaohongshu IPO Filing Faces Complaint to HKEX and SFC by Former Employee

Xiaohongshu, which submitted a confidential IPO application to Hong Kong Exchanges and Clearing (0388) at the end of last month, has been reported by a former employee to Hong Kong regulators under his real name, alleging “malicious layoffs to evade stock option payouts” and inconsistent information disclosure between onshore and offshore entities, according to Ming Pao. The complainant, who identified himself as Chen Hao, a former head of Xiaohongshu’s South China direct sales commercialization team, wrote on his WeChat public account that he sent complaint emails on June 28 to HKEX’s listing department and the Securities and Futures Commission. He said he attached first- and second-instance court judgments, legal documents related to stock option litigation, old and new proof of resignation, and supporting materials from affected employees, and added that regulators’ email systems have confirmed receipt of all messages.