Shares of Trip.com Group Ltd., a leading online travel services provider in China, plummeted nearly 22% in Hong Kong trading on Thursday following the announcement of an antitrust investigation by Beijing. This dramatic decline marked the company’s worst day since its listing in April 2021, adding to a 17% drop in its share price the previous day in New York.
The State Administration for Market Regulation (SAMR) disclosed late Wednesday that it was investigating Trip.com for “suspected abuse of its dominant market position and monopolistic practices.” This announcement reverberated through the market, making Trip.com the worst-performing stock on the Hang Seng Index.
As the largest online travel provider in Asia by market capitalization and a significant player globally, Trip.com also holds interests in several companies, including UK flight aggregator Skyscanner and Indian travel platform MakeMyTrip. In response to the investigation, Trip.com stated that it would “actively cooperate” with authorities and reassured stakeholders that its business operations were continuing as usual.
The scrutiny of Trip.com echoes a high-profile investigation into Alibaba in 2021, which resulted in a record fine of 18.2 billion yuan (approximately $2.8 billion) for monopolistic behavior. This precedent raises concerns over the regulatory environment for tech firms in China, particularly as the government intensifies its efforts to regulate dominant players in various sectors.
The timing of the probe is notable, as China’s tourism sector is poised for a robust resurgence. According to China Trading Desk, an estimated 165 million to 175 million mainland Chinese tourists are expected to embark on cross-border journeys by 2026, up from an anticipated 155 million in 2023. The upcoming Chinese New Year holiday from February 5 to February 23 will see millions travel domestically, further stressing the importance of a thriving tourism sector.
In a report from travel consultancy Dragon Trail International, it was noted that 501 million Chinese travelers took domestic trips during the 2025 Chinese New Year period, marking a 5.9% year-on-year increase. In the same timeframe, tourism spending reached 6.77 billion yuan, exhibiting a 7% growth.
This mix of regulatory scrutiny and burgeoning market potential paints a complex picture for Trip.com and the broader travel industry. As the company navigates this investigation amidst a revitalizing tourism market, all eyes will be on how regulatory actions may shape its future operations and market strategy. The situation encapsulates the delicate balance between governance and business in China’s dynamic economic landscape, illustrating the challenges faced by major players operating under stringent oversight.
As Trip.com grapples with these developments, stakeholders will be keenly watching for updates on the investigation and its implications for the company’s market position in a growing tourism sector.
Original Source: https://www.cnbc.com/2026/01/15/tripcom-shares-plunge-as-china-opens-antitrust-probe-into-company.html
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Publish Date: 2026-01-15 09:32:00
