Trip.com Shares Gain After China Regulator Issues $765 Million Penalty, Ending Probe

By Jason Chau

Shares of Trip.com jumped in Hong Kong after a monthslong antitrust investigation by China's top market regulator resulted in a multibillion yuan penalty on the travel-booking platform, removing an overhang on the stock.

Trip.com's shares jumped as much as 7.7% early Monday after the company received a penalty of 5.18 billion yuan, equivalent to $764.9 million, from the Chinese regulator, wrapping up an investigation launched in January. The stock pared gains to 4.0% in afternoon trading.

The State Administration for Market Regulation, China's antitrust watchdog, imposed a 3.52 billion yuan fine on the company and confiscated 1.66 billion yuan in illegal gains, according to a Trip.com exchange filing.

The regulator on Saturday said it found Trip.com had violated the country's antimonopoly law and abused its dominant market position by locking hotels into exclusive partnerships and forcing them to offer the lowest prices on its platform.

The SAMR also ordered the company to refund 122 million yuan in hotel order deposits to hotel operators.

Trip.com said it accepts the decision and will implement rectification measures, including strengthening its long-term corporate governance.

Analysts say the conclusion of the antitrust probe, which was initiated amid a nationwide crackdown on price wars and increased oversight over internet platforms, removes a key drag on Trip.com's shares, which have declined by about 35% since the start of the year. The company also trades on the Nasdaq, where its American depositary receipts have dropped close to 40% year to date.

"We think the conclusion could, to some extent, lift the overhang that has weighed on the shares for a while," Citi analysts wrote in a note.

Investors have likely already priced in Trip.com's rectification plans, which will reverse the exclusive cooperation and lowest-price practices that had supported its business, Citi said, limiting any further downside for the stock.

Given its robust supply-chain management, high-value traffic and strong customer services, the travel agency's industry position should remain largely intact, the analysts said.

Write to Jason Chau at jason.chau@wsj.com

(END) Dow Jones Newswires

July 27, 2026 03:12 ET (07:12 GMT)