HONG KONG, Oct 11 Chinese down apparel company Bosideng International Holdings Ltd 39

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HONG KONG, Oct 11 (Reuters) Chinese down apparel company Bosideng International Holdings Ltd <3998.HK> failed to sparkle in its Hong Kong debut on Thursday, ending the morning up just 7 percent after raising US$836 million in an IPO.

The lacklusture debut came a day after China Dongxiang (Group) Co Ltd <3818.HK>, which licences Kappa-branded sportswear in China, closed its first day of trade up 36 percent as investors sought exposure to rising consumption in China.

But some market watchers were cautious about Bosideng's growth outlook, saying global warming could crimp demand for its products.

''Bosideng focuses on the down apparel industry, which looks unattractive as climate change brings warmer winters. This could affect consumer demand for down apparel products,'' said Steven Leung, director of institutional sales at UOB-Kay Hian.

Bosideng shares ended the morning session up 7 percent at HK$3.52, giving the company a market value of about $3.55 billion.

It touched a high of HK$3.86 soon after the market opened, up 18 percent from its IPO price of HK$3.28.

The index of Chinese companies listed in Hong Kong <.HSCE> hit a record high on Thursday and closed the morning up 2.7 percent.

Bosideng, which is a privately run company based in the eastern city of Changsu, owns brands including ''Bosideng'', ''Snow Flying'', ''Bingjie'' and ''Kangbo''.

Bosideng generated orders for 69 times the shares initially on offer to retail investors compared with Dongxiang, which generated orders for 124 times the number of shares initially on offer.

The shares traded on Thursday at 28 times the company's forecast earnings for the end of March 2008.

By comparison, peers Ports Design <0589.HK> trades at 34 times 2008 forecast earnings, while Li Ning <2331.HK> and Belle International Holdings <1880.HK> trade at 41 times and 38 times, respectively.

Bosideng posted 617.6 million yuan in net profit for the fiscal year ended in March, up 23 percent from the previous fiscal year.

But net margins fell to 14.1 percent from 17.7 percent due to a 257 million yuan provision for slow-moving inventory.

Morgan Stanley and Goldman Sachs sponsored the deal.

(US$1=HK$7.8) REUTERS KR SSC1143

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