Shares in Nine Dragons Paper, the country’s largest containerboard producer, closed at US$0.61 as they made their Hong Kong trading debut Friday, a 40% rise on the initial public offering price of US$0.44. This came despite the Hang Seng Index falling 0.5% to 15,802. Analysts pointed to a shortage of paper supply for packaging materials in China as being responsible for Nine Dragons� strong opening, adding that demand would only rise as the consumer market developed. The company was also helped by its price/earnings ratio of 13.6 being lower than the 16.2 P/E ratio of its rival Lee & Man Paper Manufacturing, although its ratio rose to 19.2 by close of trading on Friday.
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