Trip.com Group Limited (TCOM) saw its shares plummet by 18.42% during intraday trading on Wednesday, as investors reacted sharply to news of a regulatory investigation into the company's business practices.

The steep decline followed an announcement by China's State Administration for Market Regulation (SAMR) that it has initiated a formal probe into Trip.com for suspected monopolistic conduct and abuse of its dominant market position. The investigation, conducted under China's Anti-Monopoly Law, has raised concerns about potential financial penalties and operational restrictions for the online travel giant.

This is not the first time Trip.com has faced regulatory scrutiny. The company was previously summoned by regional authorities in Guizhou and Zhengzhou for alleged unfair competition practices, including enforcing "pick one of two" exclusivity clauses and manipulating merchant pricing. Despite its strong financial performance, the latest probe has overshadowed investor sentiment, triggering a sell-off.