Trip.com Group Ltd TCOM shares are trading lower by 1.4% to $35.34 during Tuesday's session. Shares of several Chinese stocks are volatile this week amid concerns over the country's property sector following reports suggesting China Evergrande said it's unable to issue new debt due to an ongoing investigation into its Hengda Real Estate subsidiary.
Why It Matters
Problems in the Chinese property sector can have a cascading effect on the broader economy. If there is a significant downturn in the property market, it can lead to reduced consumer spending and decreased consumer confidence. This, in turn, can impact the travel and tourism industry, which is Trip.com's primary business.
Reduced economic activity can lead to fewer people traveling, booking hotels or using travel-related services, affecting Trip.com's revenue and profitability.
What's Going On?
Evergrande, the beleaguered Chinese property developer, said Friday that it was cancelling a creditor meeting scheduled early this week. It said that “sales had not been as expected”.
The announcement is the latest in a series of scandals to hit the Chinese financial behemoth. Mid-September, the domestic regulator approved a 50% sale of its insurance business China Evergrande Life into a special purpose vehicle owned by the Chinese state to free up cash.
Then last week, staff in the company’s wealth management division were detained by Shenzhen police...Read More
According to data from Benzinga Pro, Trip.Com has a 52-week high of $43.59 and a 52-week low of $19.25.
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