Taiwan on Thursday announced an immediate one-year ban on the Chinese social media network Xiaohongshu, saying the app posed a risk of fraud.

Taiwan’s interior ministry said in a statement that it will block access to Xiaohongshu, also known in English as Rednote, calling it a potential “high-risk area for online shopping fraud.”

Authorities linked the platform to about 1,700 fraud cases that caused financial losses of over 247.7 million New Taiwan dollars ($7.9 million) since 2024, the ministry said. The app has over 3 million users on the island, the ministry said.

Officials also said that Taiwanese law enforcement agencies face “significant difficulties” obtaining necessary information because Taiwan lacks jurisdiction over the company.

The interior ministry said the app failed all 15 indicators in cybersecurity tests conducted by the National Security Bureau.

Taiwan’s internet service providers were instructed to block access to the app, Deputy Minister of the Interior Ma Shih-yuan said in a press conference Thursday.

The ministry also urged international platforms such as Google to “completely cease publishing Xiaohongshu advertisements.”

Authorities reminded the public not to download the app or stop using it if already installed.

In a Facebook post, Cheng Li-wun, chairwoman of the opposition Kuomintang party, said the move “significantly [restricts] Internet freedom,” and described the ban on Xiaohongshu as “a starting-point for building the Great Wall of the Internet,” by the ruling Democratic Progressive Party.

Xiaohongshu, Apple and Google did not immediately respond to CNBC’s request for comments.

In 2022, Taiwan banned Xiaohongshu from government devices, calling it a “united front” for Chinese propaganda.

Earlier this year, Taiwan sent a letter to Xiaohongshu’s parent company, Xingyin Information Technology (Shanghai), seeking “concrete improvement measures,” but the company did not reply.

Xiaohongshu is widely used in China and saw renewed interest in the U.S. earlier this year after a proposed ban on its competitor TikTok. That prompted TikTok users to flock to Xiaohongshu, adding roughly 700,000 new users to the platform, according to Reuters.

— CNBC’s Anniek Bao contributed to this report.

Shares of Moore Threads, a Beijing-based graphics processing unit (GPU) manufacturer often referred to as “China’s Nvidia,” soared by more than 400% on its debut in Shanghai following its $1.1 billion listing.

The stock is currently trading at 584.98 yuan, over five times its IPO price of 114.28 yuan.

Moore Threads’ IPO was led by CITIC Securities, which served as the lead underwriter for the offering. The joint book runners on the deal were BOC International Securities, China Merchants Securities, and GF Securities.

The company, which is not yet profitable, said in its listing that the IPO proceeds are needed to accelerate several core research and development initiatives, including new-generation self-developed AI training and inference GPU chips. A portion of the funds will also be used to supplement working capital.

Moore Thread’s successful IPO comes despite it being placed under U.S. sanctions in 2023, which limited its access to advanced chip manufacturing processes and foundries.

The firm is representative of a growing cast of Chinese companies developing AI processors amid Beijing’s efforts to reduce reliance on American chip designer Nvidia.

Other companies in the space include tech giants like Huawei, as well as more specialized players like Cambricon — a firm whose shares on the Shanghai exchange have surged more than 100% year to date.

Washington has maintained varying export restrictions on Nvidia for years, preventing it from selling its most advanced AI chips to China. More recently, Beijing has also stepped in to block imports of Nvidia’s chips as it tries to encourage domestic alternatives like Moore Threads.

Newer players like Enflame Technology and Biren Technology have also entered the space, aiming to capture a share of the billions in GPU demand no longer served by Nvidia. Chinese regulators have also been clearing more semiconductor IPOs in their drive for greater AI independence.

SoFi shares fell almost 6% in extended trading Thursday after the fintech company announced a $1.5 billion stock offering.

The company, which provides online loans and other banking services, said in a press release that it will use the proceeds for “general corporate purposes, including but not limited to enhancing capital position, increasing optionality and enabling further efficiency of capital management, and funding incremental growth and business opportunities.”

The announced offering comes after SoFi’s market cap almost doubled so far in 2025. The stock price is up more than sixfold since the end of 2022.

A company’s share price often drops on a planned share sale as the offering dilutes the value of existing holders’ stakes.

In its third-quarter earnings release in late October, SoFi reported revenue growth of 38% from a year earlier to $961.6 million, while net income more than doubled to $139.4 million. The company reported cash and equivalents of $3.25 billion.

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