Groupe Danone has upped its stake in China's Huiyuan Juice following the company's IPO on the Hong Kong stock market.

The France-based company, which first invested in Huiyuan last year, has taken its stake to 24.32% following the float.

Emmanuel Faber, the head of Danone's business in Asia-Pacific, said: "The China fruit juice market is experiencing strong growth and we are excited to be part of this. We believe supporting and developing strong local brands such as Huiyuan Juice is key to our success in China."

China is Danone's third-largest market in terms of sales. Last year, the company saw sales reach EUR1.4bn (US$1.9bn), over 10% of its global revenues.

"With Danone as one of our key investors, we can leverage the expertise and management of a global leader in the food and beverage market," Huiyuan chairman and president Zhu Xinli said.