Listing candidate Nine Dragons Paper (Holdings) is a hot pick by retail investors who have lodged orders for at least $900 million in margin financing with local brokerages. The orders were almost triple the retail-investor allocation of about $340 million - one-tenth of the international offer. Brokers believe the book will still surge in the next two days. Sun Hung Kai Securities, a brokerage firm that usually receives most of its margin orders on the closing day of any offer, had booked about $600 million worth of orders yesterday. Chief operating officer Tony Leung said the first-day response showed Nine Dragons was a hot offer given its low valuation and the currently good market sentiment. Kingston Lin, an associate director at Prudential Brokerage, said margin orders received by his firm yesterday - the first day of the public offer - was as good as those of Lingbao Gold, the most popular offer so far this year. Prudential had received $300 million margin orders yesterday. While several brokerages declined to disclose the subscription situation on the first day, a trader said he would not be surprised if the response to the float would be comparable to that of Lingbao, which soared 46.3 per cent on its January 12 debut. Nine Dragons has set its initial public offering's indicative price range at $2.85 to $3.40 per share and plans to raise up to $3.4 billion. Separately, GEM listing candidate Xinjiang Tianye Water Saving Irrigation System intends to pay out at least 80 per cent of its net distributable profit earned last year as dividend, according to its listing prospectus. The company's turnover last year is expected to be slightly lower than in 2004, according to the prospectus. Executive director Huang Yaoxin explained that the fall was due to the drop in turnover from installation services. But he declined to comment if this would translate into a decline in net profit. Xinjiang Tianye, set to start trading next Tuesday, will raise up to $260 million by placing its shares at $1.18 to $1.48 each. Sun Hung Kai International is the sponsor of the float.