UPDATE 1-Peak makes HK debut, Sequoia sees big win in China

* Shares of Peak opened at HK$3.70, below IPO price

* Sequoia bought 8pct of Peak for HK$0.5 per share in 2007

* Sequoia says to invest more in China consumer sectors (Adds comments, investment details and background)

HONG KONG, Sept 29 - Shares of Peak Sport Products Co opened below the IPO price on Tuesday but Sequoia Capital, which has backed the strong local rival for Nike Inc in China since 2007, made a big win in its investment.

Peak opened at HK$3.70 per share in its Hong Kong debut after the sports shoe maker raised HK$1.72 billion ($221 million) in its Hong Kong initial public offering last week. Peak's IPO price was set at HK$4.10.

Sequoia Capital invested $6 million in Peak for an around 8 percent stake at just HK$0.50 per share in August 2007 and invested an additional $20 million in Peak for about HK$1.70 per share, less than six months ago before Peak's Hong Kong IPO.

Now, Sequoia holds around 10 percent of Peak after its listing. Peak's IPO was handled by Credit Suisse.

"We've witnessed the fast growth of China's shoe-making industry and Peak is obviously becoming a market leader despite tough competition," said Neil Shen, China founding partner of Sequoia Capital, the largest U.S. venture capital firm.

"After Peak, we're interested in investing more in China's consumer-driven sectors," Shen told Reuters.

On Tuesday, Peak published a full-page advertisement in Hong Kong newspapers featuring seven star basketball players including Dikembe Mutombo of the Houston Rockets and Jason Kidd of the Dallas Mavericks, who have been signed up by Peak as its "image persons" for brand promotion.

"We look at the company from a long-term perspective and we are confident of our long-term development," Peak chief executive Xu Zhihua told reporters after a listing ceremony, when asked for comments on the performance of its share debut.

Sequoia Capital, which backs many top technology companies including Google Inc and Apple Inc in the United States, focuses on consumer-related sectors in China as Beijing encourages its 1.3 billion population to spend more to fuel growth of its economy, already the world's No.3.

Global private equity funds have poured billions of dollars into China deals in the past few years, but successful exits from investments remains a major challenge to most investors in China where rules on foreign investment can be tough and vague.

In August, Sequoia Capital agreed to invest $63 million in American Dairy Inc to help the China-focused milk powder maker boost its business.

In terms of absolute numbers for investment returns, Peak's listing so far marked the biggest success for Sequoia Capital in China where the venture capital fund has invested in about 60 portfolio companies since 2005, Shen noted.

At 0337 GMT, shares of Peak were traded at HK$3.52.

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