Zhitong Financial APP learned that Nine Dragons Paper (02689) rose nearly 5% in the afternoon and rose 4.55% to HK $6.89 as of press time, with a turnover of HK $32.4725 million.

On the news side, since mid-April, the average price of corrugated paper has fallen from 3812.5 yuan to 3558.9 yuan in mid-July, the inventory of major paper companies has reached a two-year high, and the current downstream demand has not yet been repaired. Nine Dragons Paper (Dongguan base), Shanying International, Dongguan Liwen, Dongguan Jinzhou and other paper mills have recently issued shutdown letters one after another, and many small and medium-sized enterprises have also joined.

Lu Yanshuo, an analyst at Zhuochuang Information, said that since the second quarter, the employment of corrugated enterprises in South China has shown a relatively low level, and since April, it has shown a downward trend for three consecutive months compared with the same period last year. The reason behind this is mainly due to the greater cost pressure, the decline in profitability, and the lower-than-expected recovery of demand, but industry analysts expect market conditions to gradually recover in the third quarter with the arrival of the peak demand season.