DALTON TANONAKA, CNN ANCHOR: The growth potential in China is hard- driving the distribution unit of a Chinese PC maker to financial success. Digital China got off to a strong debut on the Hong Kong Stock Exchange. Its share price opened higher than the offer price of 3.68, racing to a high of 4.25, before closing at 4.00 even. CNN's Kirsty Alfredson has more.</s>KIRSTY ALFREDSON, CNN CORRSPONDENT (voice-over): Digital China, the overseas distribution arm of Chinese PC maker Legend is listing on the Hong Kong Stock Exchange in a bid to raise 41.6 million dollars. It's share price climbed, despite a worldwide tech stock downturn, and a flagging U.S. economy. The company said it's due in part to a rosy economic outlook for China.</s>ZHANG YI BING, V.P., DIGITAL CHINA: Hong Kong bank yesterday predicted a Chinese overall economic growth of 7.5 percent, which is quite impressive.</s>ALFREDSON: So I think this has contributed mostly to the success of the business of this company. (on camera): Analysts say what's unique about Digital China is that while it's a tech stock, it's also a distributor, and that's an area foreign companies traditionally don't do well in. (voice-over): The PC distribution unit generated 15 percent of Legend's earnings through nine month, through December 2, 2001, and posted revenues during that period of $825.6 million.</s>VINCENT CHAN, EXEC. DIR., UBS WARBURG: China's domestic market is very large, and in terms of technological products, the penetration ratio is still very low. So I think the market is expecting that in long run there will be a lot of business potential for this company. Digital China says said the growth potential in China is what's attracting most of its international investors. Kirsty Alfredson, CNN, Hong Kong.
Digital China Got Off to Strong Debut on Hong Kong Stock Exchange