Trip.com Shares Plunge 22% Following Chinese Antitrust Investigation
Trip.com's Hong Kong shares crashed 21.7% to HK$446 following a Chinese antitrust investigation for suspected abuse of dominant market position. The probe could result in fines up to ₹5,847 crores based on revenue calculations, while analysts suggest potential divestiture requirements for the company's Tongcheng stake. Despite cooperating with regulators, the investigation may benefit competitors and represents the worst trading session since Trip.com's 2021 listing.
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Trip.com's Hong Kong-listed shares suffered their worst trading session since going public, plummeting as much as 21.7% to HK$446 following news of a Chinese antitrust investigation. The dramatic sell-off occurred in early trading on Thursday after the State Administration for Market Regulation announced it was investigating the online travel agency for suspected abuse of its dominant market position.
Investigation Details and Market Impact
The Chinese regulator's statement on Wednesday provided limited details about the specific allegations against Trip.com, noting only that the investigation is based on preliminary reviews and anti-monopoly law provisions. The stock decline represents the biggest single-day drop since the company's 2021 public listing, with trading volume reaching record highs during the session.
| Trading Metrics: | Details |
|---|---|
| Maximum Decline: | 21.7% |
| Intraday Low: | HK$446 |
| Later Recovery: | ~18% decline |
| Trading Volume: | Record high |
| Lowest Level Since: | June 2025 |
Potential Financial Penalties
Under China's anti-monopoly law, companies found guilty of abusing their dominant market position face fines ranging from 1% to 10% of their previous year's revenues. Citi analysts calculated that this could result in a maximum penalty of up to 4.9 billion yuan (₹5,847 crores or $702.6 million) based on Trip.com's estimated 2025 revenue figures.
Company Response and Analyst Views
Trip.com issued a statement on Wednesday confirming its active cooperation with the investigation and commitment to "fully implement regulatory requirements." Despite the immediate market impact, Citi analysts noted that while the investigation would likely affect sentiment until closure, it was unlikely to change the company's industry position.
Nomura analysts highlighted additional potential consequences, suggesting regulators might require Trip.com to divest or reduce its holdings in Tongcheng, China's second-largest online travel agency, where Trip.com maintains a stake exceeding 20%. They noted this situation could provide competitors including Tongcheng, Meituan, and Fliggy with opportunities to narrow the competitive gap.
Market Implications
The investigation adds to regulatory scrutiny facing Chinese technology companies and highlights ongoing government efforts to address monopolistic practices in the digital economy. The severity of the market reaction underscores investor concerns about potential operational and financial impacts on one of China's leading online travel platforms.
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