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Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] HONG KONG/BEIJING — Shares of Trip.com Group (Ctrip) saw a dramatic sell-off in Hong Kong on Thursday after Chinese regulators announced an antitrust investigation into the online travel giant. The probe has sent shockwaves through the Asian travel sector just as the country prepares for its peak holiday season.
Market Reaction and Regulatory Action As of 1:50 PM local time, Trip.com’s Hong Kong-listed shares plunged 19.37% to HK$459.20, hitting an intraday low of HK$446. This follows a more than 17% drop in its American Depositary Receipts (ADRs) on the New York stock exchange the previous day.
The State Administration for Market Regulation (SAMR) issued a statement on the 14th, confirming the initiation of the probe due to "suspected abuse of market dominance and monopolistic practices." While the regulator did not specify the exact violations, the move echoes the 2021 crackdown on Alibaba, which resulted in a record-breaking $2.8 billion fine.
Company and Industry Response Trip.com responded with an official statement pledging full cooperation: "We will actively cooperate with the regulatory investigation, fully understand all requirements, and work with industry stakeholders to build a sustainable market environment." The company added that its current business operations remain normal.
Strategic Impact Amid Recovery Hopes The investigation comes at a critical juncture for the Chinese tourism industry.
Travel Recovery: Experts at China Trading Desk estimate that mainland Chinese travelers' outbound trips will reach 165–175 million this year, surpassing last year's 155 million.
Lunar New Year Surge: The probe arrives just weeks before Chunyun (Spring Festival), China’s largest holiday (Feb 15–23). Last year, over 500 million Chinese traveled domestically during this period, spending approximately 6.77 billion yuan.
As Asia’s largest online travel agency—owning platforms like Skyscanner and holding stakes in India’s MakeMyTrip—Trip.com’s scrutiny signals a potential new phase of regulatory oversight for China's resurgent tourism and tech sectors.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
