The company is suspected of abusing its dominant market position, the State Administration for Market Regulation said in a statement on Wednesday, without elaborating on the allegations. The investigation is based on preliminary reviews and the anti-monopoly law, it said.
Shares of the company slid as much as 21.7% to HK$446, the lowest since June 2025, before narrowing the loss to around 18%.
If sustained, the decline would mark the biggest single-day drop since the company went public in 2021, with trading volume also hitting a record high.
In a statement on Wednesday, Trip.com said it was actively cooperating with the investigation and would “fully implement regulatory requirements.”
“The investigation is likely to impact TCOM’s sentiment till the closure but unlikely change its industry position,” Citi analysts said in a note.
Under China’s anti-monopoly law, a fine of 1% to 10% of revenues from the previous year would be imposed for firms that are found to be abusing their dominant position. That implied a potential fine for the company of up to 4.9 billion yuan ($702.6 million) based on its estimated revenue for 2025, Citi said.
Analysts at Nomura said there was a possibility that the regulator could require Trip.com to divest or reduce its holdings in China’s second-largest online travel agency, Tongcheng, in which Trip.com holds a stake of more than 20%.
Tongcheng did not immediately respond to a request for comment.
“This situation may provide an opportunity for TCOM’s competitors – Tongcheng, Meituan and Fliggy – to narrow the competitive gap,” Nomura said.
