TRIP.COM-S (09961) saw an early-session decline of over 6%, and as of press time, the stock was down 4.17% at HK$552.5, with a turnover of HK$1.316 billion.

The drop follows a notice issued on November 14 by China's Ministry of Foreign Affairs and its embassy and consulates in Japan, urging Chinese citizens to avoid traveling to Japan in the near term. On November 16, inquiries to TRIP.COM revealed that the platform is closely monitoring the situation.

The company's customer service noted a surge in cancellations for Japan hotel bookings, with staff assisting affected customers. Some travelers remain hesitant, awaiting further developments. While certain hotels have agreed to free cancellations—allowing TRIP.COM to process refunds automatically—others require further negotiation, with discussions ongoing.

Goldman Sachs recently highlighted in a report that TRIP.COM's outbound travel business continues to normalize, growing 14-15% year-on-year, slightly above the lower end of the company's 10-20% guidance range. Meanwhile, Guotai Haitong Securities pointed out that TRIP.COM's adjusted profit margins remain on a clear upward trajectory, benefiting from economies of scale in R&D and administrative expenses. The brokerage expects further margin improvements as Trip.com's profitability strengthens.