Ctrip Group is under investigation for suspected monopoly, and its stock price has dropped nearly 30% in response.

The State Administration for Market Regulation announced on January 14, 2026, that it has initiated an investigation into Ctrip Group Limited for suspected abuse of market dominance and monopolistic behavior. Following this news, Ctrip Group-S (09961.HK) stock price experienced a significant decline.

Recent Stock Performance

From the announcement of the investigation until February 12, 2026, Ctrip’s Hong Kong stock price fell by 29.36%, dropping from HKD 609.00 on January 13 to HKD 428.80 on February 12, and briefly touching a low of HKD 425.00. During the same period, the Hang Seng Index declined by 0.86%, and the tourism and sightseeing sector fell by 3.59%. Ctrip’s stock decline far exceeded the overall market and industry averages.

Impact of the Event

This investigation is not an isolated incident. Regulatory authorities had conducted preliminary checks before filing the case and had multiple discussions in 2025 regarding issues such as “choose one of two” and price intervention. The Yunnan Province Tourism and Homestay Industry Association also publicly accused some OTA platforms in November 2025 of leveraging market dominance to engage in unfair competition. Market analysts believe that the investigation reflects an evolution in regulatory focus. Some suggest that current regulation not only emphasizes market share but also concentrates on whether platforms hinder normal price transmission through behaviors like “price control,” thereby exacerbating industry “involution” competition. Ctrip’s impressive net profit of 29 billion yuan in the first three quarters of 2025, contrasted with the generally strained performance of upstream industry entities like airlines and hotel groups, may have drawn regulatory attention to the distribution of industry benefits. The news of the investigation has caused market concerns over potential fines and business restructuring, leading to stock price adjustments.

Industry Sector Situation

It is important to note that the overall Hong Kong stock market was weak during this period, and the online travel industry faces competitive pressure from platforms like Meituan and Fliggy. These factors may also have influenced the stock price.

The above content is compiled from publicly available information and does not constitute investment advice.