SHANGHAI — Shares of China’s Foshan Haitian Flavouring and Food, the world’s top maker of soy sauce, made a strong debut yesterday on the Shanghai stock exchange, as investors scrambled to jump on the consumer staples bandwagon.

Seconds after the opening bell, shares of Foshan Haitian were suspended from trading after hitting 73.80 yuan (S$15.40) each, or 44 per cent above its initial public offering price of 51.25 yuan, the upper limit set by the exchange. Trading resumed five minutes before the market closed, with the shares ending at 66.41 yuan, well off the day’s high, but nearly 30 per cent above its IPO price.

The company raised 3.84 billion yuan after selling 74.85 million shares, or 10 per cent of its enlarged share capital, in China’s second-largest IPO since a freeze on new listings ended in December. Analysts said Foshan Haitian shares could gain further in the near term, as the firm plays into the theme of growing consumer demand for essential products amid rising incomes.

“Haitian will be a flagship in the food and beverage sectors, excluding breweries, given its leading position in China’s seasonings markets,” said Huatai Securities analyst Zhou Lin. Investors favour fast-moving consumer goods companies as such defensive stocks offer steady growth amid a slowing economy, he said.

Guangdong-based Foshan Haitian has a market share of between 16 and 19 per cent of the Chinese market in 2010, the firm said in its prospectus. At the day’s high of 73.80 yuan, Foshan Haitian was trading at between 34 and 35 times its 2013 estimated earnings, largely in line with its listed comparable peers in the sector.

BOC International investment adviser Jacky Zhang said the shares may trade as high as 80 yuan in the short run, suggesting the stock’s hefty gains may be sustained in the days ahead. DOW JONES