HK Stock Market Move | Most paper stocks decline, supply exceeding demand pattern difficult to reverse; institutions expect paper prices may continue to operate under pressure.

Most paper stocks decline. As of press time, ND PAPER (02689) fell 2.9% to HK$6.02; LEE & MAN PAPER (02314) fell 2.55% to HK$3.44. On the news front, according to Sublime China Information, as of September 17, the theoretical monthly gross profit margin of China's corrugated paper industry fell 1.48 percentage points month-on-month, putting further pressure on industry profitability. Although costs and paper prices fell simultaneously during the month, the decline in corrugated paper prices was significantly larger than the decline in costs, becoming the core driver of the continued narrowing of gross profit margin. Before the end of September, the supply exceeding demand pattern is difficult to reverse, paper prices may continue to operate under pressure, and the industry's theoretical gross profit margin is still expected to narrow further. Looking ahead, before the end of September, the corrugated paper market will still face a pattern of weak supply and demand.