China's instagram-like social media platform Xiaohongshu has been suggested to bring in a Chinese state-owned investor to push for an IPO, according to Bloomberg.

The report cited sources as saying that Chinese regulators had informally suggested to Xiaohongshu that bringing in a state-owned investor could make the process of getting the company approved for an IPO smoother.

The report comes after market sources said Xiaohongshu was interested in listing in Hong Kong.

Current investors in Xiaohongshu include Alibaba, Temasek and Tencent.

Rumors surfaced last month that Xiaohongshu investors were selling their shares at a valuation of no less than $20 billion, and a number of large venture capital firms, including Tencent, have expressed interest.