With effect from 6 March 2017, Li & Fung was removed from Hang Seng Index as a constituent (Blue Chip stock) and replaced by Geely Automobile. In the same year, Li & Fung entered into a strategic transaction between Hony Capital and the Fung Group whom acquire three of its vertical product businesses, furniture (Whalen), sweaters (Cobalt Fashion) and beauty (MEIYUME), for an estimated cash price of $1.1 billion. Turnover and profits in these three vertical products business have been declining in recent years such that a one-time accounting loss of US$610 million to accommodate write-downs related to the disposal was required of Li & Fung.