WANG YUANYUAN’S focus on the Chinese consumer has served her so well this year, she’s buying more of the same stocks.

A bet on sustained demand for liquor has helped her return 61 percent this year, more than any year since the Fullgoal Fund Management Co. consumer-focused fund started in 2014. Wang is making an even bigger bet on the stocks, more than doubling her holdings of Kweichow Moutai Co. in the second quarter, according to the fund’s latest quarterly report. She also boosted her shares of Wuliangye Yibin Co. and Anhui Gujing Distillery Co. by 71 percent and 40 percent respectively.

Moutai, Wuliangye and Anhui Gujing, which have all surged at least 61 percent since the start of the year, accounted for almost a fifth of the value of her fund’s assets at the end of June.

Wang says valuations of China’s liquor stocks are still reasonable given their high growth potential. Leading liquor firms will see a compounded annual growth rate of around 20 percent in earnings over the next two to three years amid strong retail demand, she said.

“People will never stop their pursuit of a better life no matter how the economy fares,” said Shanghai-based Wang, who invests in a wide range of consumption-linked stocks including manufacturing and information technology. “Consumers are constantly buying higher-end liquors.”

Wang’s big bet on liquor stocks comes amid concerns that the trade is getting too crowded, after they helped propel a gauge of consumer staples to the top of the CSI 300 Index this year. The liquor sector dived Tuesday amid signs that competition is weighing on profitability. (SD-Agencies)