Trip.com Group Limited (NASDAQ:TCOM) stock fell Wednesday after regulatory news.
The travel services provider confirmed it received a formal investigation notice from China's market regulator.
The notice came from the State Administration for Market Regulation (SAMR).
What The Inquiry Entails
SAMR told Trip.com Group it has opened an investigation under China's Anti-Monopoly Law. The notice did not list specific allegations or possible penalties.
Trip.com Group said it received the investigation notice on Tuesday. The company said it will engage with regulators and fully support the process.
Where The Regulator Operates
SAMR serves as China's primary competition and market oversight regulator, with authority nationwide.
Trip.com Group said it will cooperate with the investigation and that operations remain normal. The company also said it does not expect an immediate impact on daily services.
Trip.com Group operates a global travel platform offering hotel bookings, transportation ticketing, packaged tours and corporate travel management. Its brands include Trip.com, Ctrip and Skyscanner.
According to Benzinga Pro, TCOM stock has gained over 17% in the past year. Investors can gain exposure to the stock via CoreValues Alpha Greater China Growth ETF (NYSE:CGRO) and AdvisorShares Hotel ETF (NYSE:BEDZ).
TCOM Price Action: Trip.com Group shares were down 16.11% at $63.49 during premarket trading on Wednesday, according to Benzinga Pro data.
Photo by T. Schneider via Shutterstock
