[Featured Stock] Cheongdam Global Prepares to Suspend TikTok in the US... Alternative 'Xiaohongshu' Rises to No.1 in App Store

Cheongdam Global is showing strong performance. It is interpreted that this is influenced by news that the United States is preparing to ban the use of TikTok, a social media (SNS) platform owned by China's ByteDance, leading Americans to flock to 'Xiaohongshu,' the Chinese version of Instagram, as an alternative.

As of 2:04 PM on the 15th, Cheongdam Global is trading at 6,750 KRW, up 9.77% compared to the previous day.

According to industry sources, the United States is reportedly preparing to suspend TikTok services starting from the 19th (local time). In response, foreign media reported that Americans are turning to Xiaohongshu, known as the Chinese version of Instagram, as an alternative.

Those who call themselves 'TikTok refugees' have chosen RedNote, the international version of Xiaohongshu. On the evening of the 13th local time in the U.S., it ranked first in free downloads on the Apple App Store. On the Google Play Store, it ranked eighth among social media apps.

RedNote is a popular TikTok competitor among young people in China, Taiwan, and other Chinese-speaking populations. It has about 300 million monthly users, a scale comparable to the combined user base of TikTok and Instagram. Young urban women are the main users, exchanging lifestyle tips ranging from dating to fashion.

The ban on TikTok usage in the U.S. is due to the TikTok Ban Act. In April 2023, the U.S. Congress passed the TikTok Ban Act, citing concerns that TikTok steals personal information from Americans and threatens U.S. national security. According to this bill, if ByteDance does not sell TikTok's U.S. business rights to an American company, TikTok will be completely banned in the U.S. starting from the 19th.

Meanwhile, Cheongdam Global distributes more than 50 domestic brands through channels such as Xiaohongshu. They are selling live through broadcasts with influencers.