Valuation

Xiaohongshu has officially denied rumors of an acquisition by Alibaba, labeling the speculation as “groundless.” This isn’t the first time such rumors have surfaced, with similar claims made in 2019. Xiaohongshu, founded in 2013, has seen its valuation reportedly surge to $26 billion, a significant increase from its previous $17 billion valuation at the end of 2023. Alibaba has not yet commented on the reports.

Hurun’s 2025 Global Unicorn Index reveals record-breaking growth, with 1,523 privately held companies valued over $1 billion. The US leads with nearly 50% of the unicorns, followed by China. Software & services dominate, particularly in fintech and AI. SpaceX takes the top spot, followed by ByteDance and OpenAI, highlighting trends in space exploration and artificial intelligence. AI-related unicorns are particularly prominent, with a combined valuation of nearly $1 trillion.

Xiaomi’s stock is trading around HK$53.2, nearing a previous high. Its P/E ratio of 54 indicates strong growth potential. Facing the question of whether to buy, CEO Lei Jun emphasizes Xiaomi’s improving fundamentals and long-term performance, expressing confidence in future growth for long-term investors.