Trip.com Group Limited (TCOM) saw its shares plummet by 7.43% during pre-market trading, as investors reacted to news of a regulatory investigation by China's State Administration for Market Regulation.
The sharp decline followed reports that the regulator is probing Trip.com over suspected monopolistic practices, including abuse of its dominant market position. This has raised concerns about potential legal and financial repercussions for the company, leading to a sell-off.
The investigation follows previous regulatory actions against Trip.com, including summons for talks and warnings about unfair competition practices. Despite strong financial performance, the regulatory scrutiny has overshadowed investor sentiment, causing the stock to drop significantly.