Backers of China's Xiaohongshu are looking to sell a part of their stake to the likes of Tencent , among others, in a deal that could value the TikTok-rival at at least $20 billion, Bloomberg News reported on Thursday.

Xiaohongshu’s biggest shareholders are in talks to sell shares in the Chinese Instagram-like service at a valuation of at least $20 billion, drawing interest from Tencent Holdings Ltd. and other big names as a potential TikTok US ban approaches.

On the heels of TikTok's looming shutdown on January 19 over its ownership in the U.S. (unless the Supreme Court intervenes), it looks like another American users are flocking to a Chinese app called Xiaohongshu as people become less optimistic that TikTok can overturn U.

Shanghai-based Xiaohongshu becomes a haven ahead of Supreme Court decision, with users welcoming American arrivals.

With days to go before TikTok may be banned in the US, users have sent a little-known app to the top of the app store charts. Xiaohongshu, also known as RedNote, may not be a household name here but it has millions of users in China,