Pursuits
Ctrip, Qunar Surge as Deal Lessens China Travel Competition
- Companies will have 70-80% market share, Summit Research says
- China has become largest source of tourists in the world
This article is for subscribers only.
Ctrip.com International Ltd. and Qunar Cayman Islands Ltd. jumped in U.S. trading after the companies agreed to a merger, creating the dominant online travel service in China in a deal that may ease price competition that has crimped profits.
Ctrip rallied 22 percent to a record close of $90.78 in New York on Monday. Qunar advanced 7.9 percent to $42.65, the highest since Aug. 10 on trading volume that was nearly 17 times the three-month average. Goldman Sachs Group Inc. upgraded both companies to buy. A Bloomberg gauge of U.S.-traded Chinese stocks rallied 2.1 percent.