Signs of a frenzy building among Chinese investors emerged on Friday when a herbal shampoo maker saw its shares surge by a third on their debut after part of the issue was 446 times subscribed.

Shares in BaWang International – which uses movie star Jackie Chan in its advertisements – rose as much as 34 per cent in spite of a tepid market. They finished up 27.3 per cent at HK$3.03, making it the second-best initial public offering in Hong Kong this year. Hing Lee, a furniture maker, soared 39.2 per cent in its first day of trading on June 22.