Trip.com faces a major antitrust probe by SAMR, causing a 40% stock drop amid potential hefty fines.

Trip.com Group is under investigation by China's State Administration for Market Regulation (SAMR) for alleged monopolistic practices, triggered by complaints from small hotel operators. This probe has led to a sharp 40% decline in Trip.com's stock price from its pre-investigation highs. Despite trading at a lower valuation compared to peers, Trip.com maintains strong buyback activity and benefits from robust inbound travel growth and international expansion. The company is expected to leverage its competitive advantages alongside government efforts to boost inbound tourism, though the hotel industry's profit squeeze is partly due to aggressive market entrants, not solely Trip.com.