Trip.com Group Limited's Hong Kong-listed shares (09961) plummeted 5.20% during intraday trading on Thursday. The sharp decline followed the release of the company's first-quarter financial results and a concerning regulatory update.

The online travel giant reported a significant 41.6% year-over-year drop in net income to RMB 2.5 billion for Q1 2026, despite a 17% rise in revenue. More critically, the company disclosed that it has been under investigation by China's State Administration for Market Regulation (SAMR) since January 2026 for potential abuse of a dominant market position, which could lead to fines or mandated changes to its business practices.

Adding to investor concerns, management provided a subdued outlook, forecasting second-quarter revenue growth of only 3% to 8% year-over-year, a sharp deceleration from the first quarter's pace. This combination of regulatory uncertainty, declining profitability, and a slowing growth trajectory prompted the sell-off in the stock.