Chinatopnews APP learned that ND Paper (02689) fell more than 10% in the closing session. As of the press release, it has dropped by 10.71% to HKD 3.67, with a turnover of HKD 143 million.

On the news front, ND Paper announced the issuance of USD 400 million preferred perpetual capital securities with an annual interest rate of 14%. Citigroup's research report stated that this operation is high-risk and may have a negative impact on the company's earnings. The issuance will reduce the company's asset-liability ratio. Citigroup downgraded ND Paper to Neutral with a target price of HKD 4.20, down from HKD 5.50.

In addition, Guosheng Securities pointed out that Arauco's softwood pulp is priced at USD 840 per ton and hardwood pulp at USD 770 per ton in June. The cost of paper companies continues to rise, but there is still pressure on paper prices during the off-season. It is expected that the cultural paper price in 24Q2 will stabilize, whiteboard paper is expected to fluctuate at a low level, and the profit per ton of pulp and paper series is expected to decline. The price of waste paper is expected to continue to grind in Q2.