Gold Finance reported that, according to foreign media, the largest shareholder of Xiaohongshu is negotiating to sell the company's shares, with a valuation of at least $20 billion. As the potential ban on TikTok in the United States approaches, Tencent and other large companies are reportedly interested in the transaction. According to informed sources, GGV Capital, GSR Ventures, and Tian Tu Capital are negotiating to sell part of their shares in Xiaohongshu. Interested funds include existing shareholder HongShan Capital Group (formerly Sequoia China) and Hillhouse Investment. One insider added that Tencent is also considering whether to purchase more shares. However, the aforementioned sources indicated that the deal is not yet finalized, as existing shareholders have the right of first refusal. If potential buyers decide to temporarily shelve their interest, especially given the uncertain situation surrounding TikTok, negotiations could still fail.