Shares of Trip.com, Asia’s leading online travel service firm by market capitalization, saw a steep selloff on Thursday following the launch of an antitrust investigation by Chinese authorities. Shares listed in Hong Kong dropped nearly 22%, marking the sharpest decline among Hang Seng index constituents.
The regulatory scrutiny rippled across international markets, with depositary receipts of Trip.com trading in Thailand also enduring heavy losses. TRIPCOM80, issued by KTB, dropped 13.43%, while TRIPCOM23, issued by InnovestX, fell 20.51%.
China’s State Administration for Market Regulation announced late Wednesday an antitrust investigation into Trip.com over allegations of monopolistic behavior and abuse of its market position. In a statement, Trip.com stressed it would cooperate fully with regulators and assured investors that core operations remain unaffected.
Under Chinese anti-monopoly laws, companies found in violation may be subjected to fines ranging between 1% and 10% of the prior year’s annual sales.
Trip.com stands as Asia’s most valuable online travel provider and ranks among the largest globally.
