BUTONG GROUP (06090) included in Hang Seng Composite Index likely to become a part of Hong Kong stock connect target.

On February 13, Hang Seng Index Company announced the results of the quarterly review of the Hang Seng Index Series up to December 31, 2025, in which BUTONG GROUP (06090) was included in the Hang Seng Composite Index. The changes will be implemented after the market closes on March 6, 2026 (Friday) and will take effect from March 9, 2026 (Monday), when the Shanghai and Shenzhen Stock Exchanges will adjust the scope of eligible investment targets for the Stock Connect. Institutions pointed out that BUTONG GROUP is expected to be included in the Stock Connect, bringing new opportunities for development. The adjustment of the Stock Connect targets has always been closely watched by the market, as it not only directly affects the market liquidity and valuation pricing of related stocks, but also helps mainland investors explore new high-quality investment targets and achieve precise connection between funds and quality assets. According to LiveReport's big data calculations, the market value threshold for inclusion in the Hang Seng Composite Index this time is about 9.3 billion Hong Kong dollars. China International Capital Corporation Research Report pointed out that BUTONG GROUP may be included in the Stock Connect, as it meets a series of criteria including market value, liquidity, and listing time. Data shows that BUTONG GROUP focuses on the high-end mother and baby brand sub-market with a forward-looking perspective. Since the launch of the high-end baby brand BeBeBus in 2019, BUTONG GROUP has risen rapidly with a differentiation strategy, quickly capturing users' minds with a first-mover advantage and has become a leader in this niche market. According to Frost & Sullivan data, based on GMV calculations for 2024, BeBeBus ranks first among durable parenting product brands targeting mid-to-high-end consumers in China, consolidating its market dominance. It is worth noting that BUTONG GROUP's industry value aligns highly with the needs of the Stock Connect sector layout. In the current Stock Connect consumer sector, high-end mother and baby targets are relatively scarce, and BUTONG GROUP's high-end positioned products fill this gap. Recently, CMSC also initiated coverage with a "buy" rating for the first time, optimistic about its growth potential through high-end brand positioning and multi-channel efforts. If successfully included in the Stock Connect, it will not only enrich the asset allocation choices for mainland investors but also leverage the support of southbound funds to further expand financing channels, enhance market attention, and achieve a win-win situation for the company and investors.