Shares in accounting software developer Kingdee International Software Group fell 33 per cent on their Growth Enterprise Market (GEM) debut yesterday. Analysts attributed the slide to the fall in the overall market and uncertainty over the prospects for technology plays. The counter's share price dived to 83 HK cents from its issue price of HK$1.03 in the first half-hour of the morning trading. Kingdee's price went down further to close at 69 HK cents. It was the second most actively traded GEM stock, with about 46.92 million shares worth HK$38.68 million changing hands. Kingdee chairman Xu Xiaochun said the stock's value could only be reflected by long-term development. 'It is too early to tell the company's real worth . . . and the GEM needs the short-term market adjustment,' Mr Xu said. The GEM index has been languishing at about 300 points in the past six to seven months after the busting of dotcom plays and the knock-on from the Nasdaq plunge which triggered a slump last year. Kingdee's initial public offering, entirely for private placement, was 3.1 times subscribed. Mr Xu said the subscription level was satisfactory given that the share was 'highly priced'. The issue price is about 22 times last year's earnings per share. A similar GEM-listed stock, Flexsystem Holdings, is also trading below its issue price, but at a higher price-earnings ratio of about 35 times. Kingdee sells all its output in China while Flexsystem sells only about 9 per cent of its output to the mainland.