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As fear spreads in China’s tech sector, Trip.com (NASDAQ:TCOM) shares tumbled in double digits on Monday.
Over the weekend, the conclusion of the National Congress of the Communist Party of China strengthened the role of Xi Jinping, grant him a third term. The extension of Mr. Xi’s term is seen as unusual on the eve of the congress as it breaks both the customary retirement age and term limits, traditionally 67 and two, respectively. Xi is now China’s first leader since Mao to serve more than two terms. Furthermore, by naming those loyal to Xi, including Li Qiangwho oversaw the closure of Shanghai earlier this year, has raised concerns about state pressure on many industries.
One 17.42% The drop just after the market opened on Monday reflected the biggest one-day drop for Trip.com (TCOM) since November 2018.
Read more about other Chinese stocks fall on Monday.
