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<Research>CLSA Expects Trip.com's ST Profit Margin to Come Under Pressure, CN Antitrust Actions to Become More Normal
Recommend 11 Positive 13 Negative 17 |
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China's State Administration for Market Regulation has launched an investigation into TRIP.COM-S (09961.HK) for monopolistic behavior, according to a CLSA research report. While the company is still operating normally, the news has sent its ADR (TCOM.US) price tumbling by 17%. In CLSA's estimate, China's antitrust actions may become more normal. The investigation into TRIP.COM-S may focus on exclusive cooperation rights and whether it uses its advantages to pressure merchants. Even if TRIP.COM-S loses exclusive cooperation rights with merchants, CLSA believes that it is still able to retain exceptional competitiveness thanks to its large transaction volume and long-term relationships with hotels. That being said, CLSA estimates TRIP.COM-S' profit margins to come under pressure in the short term, as it may need to provide more support to merchants. AAStocks Financial News |
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