Shandong Chenming Paper falls 18 pct in HK IPO debut

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HONG KONG, June 18 (Reuters) - Shares in Shandong Chenming Paper Holdings Ltd (1812.HK) were set to fall 18 percent in their market debut on Wednesday after it raised $410 million in a Hong Kong initial public offering.

Investors' appetite for new listings in Hong Kong remains weak, as the benchmark Hang Seng Index .HSI has dropped 6 percent in June and is down 17 percent so far this year.

Shares in Chenming Paper (000488.SZ) (200488.SZ) were indicated at HK$7.40 in pre-market trade, compared with an IPO price of HK$9.00 per share, which was at the low end of its indicated range.

Chenming Paper is the first Chinese-listed company with all three types of shares -- yuan-denominated A shares, foreign currency B shares and Hong Kong-listed H shares.

The Chinese paper manufacturer, which offered 355.7 million shares, or 17.25 percent of its enlarged share capital, was 1.42 times covered in its Hong Kong retail public offering.

Guotai Junan Securities and Macquarie sponsored Chenming's deal.

(US$1=HK$7.8)

(Reporting by Kennix Chim; Editing by Anne Marie Roantree)