China’s largest fund manager has doubled down on consumer stocks, betting on a rebound in spending as early signs of stabilisation emerge in the property and catering sectors.

Zhang Kun, who oversees US$6.9 billion at Guangzhou-based E Fund Management, increased exposure to leading baijiu makers and e-commerce platforms in his flagship mutual fund during the first quarter, according to a quarterly filing released on Thursday.

The combined assets of the four funds he manages remain the largest among mainland peers.

As part of a portfolio reshuffle at the 26.9 billion yuan (US$3.9 billion) E Fund Blue Chip Selected Mixed Fund, Zhang added 60,045 shares of Shanxi Xinghuacun Fen Wine Factory and bought 400,000 Hong Kong-listed shares of Alibaba Group Holding between January and March. Alibaba owns the South China Morning Post.

The move puts him at odds with many fund managers who remain wary of China’s consumer sector after years of weakness tied to the property downturn and a soft jobs market.

Official data showed retail sales grew at a single-digit pace in March, while a consumer-discretionary gauge on the mainland benchmark index fell more than 9 per cent in the first quarter. Alibaba’s Hong Kong-listed shares also dropped 17 per cent over the period.