Paper stocks were among the worst performers in the Hong Kong market. At the time of writing, ND PAPER (02689) fell more than 7% to HK$7.3, while CHENMING PAPER (01812) dropped over 6% to HK$1.16. LEE & MAN PAPER (02314) also declined by more than 5% to HK$3.57. On the news front, according to SCI99, the price of corrugated paper in early March was already higher than in February, deviating from seasonal patterns. Although major paper manufacturers continued to announce price increase plans in mid-to-late March, market supply continued to recover. The operating load rate of paper mills is expected to return to normal levels. Coupled with March being a relatively off-peak consumption season, demand growth is limited. Poor end-market performance may further weaken downstream purchasing enthusiasm. Inventory pressure on paper manufacturers could increase, highlighting market supply-demand imbalances and raising the risk of price weakness.