Weichai Power Co.,Ltd. (02338) saw its shares tumble more than 6% in Hong Kong trading on Thursday, reversing earlier gains despite positive news of its inclusion in the Hang Seng Index. As of the time of writing, the stock was down 5.92% to HK$31.44, with turnover reaching HK$252 million.

The pullback comes after Hang Seng Indexes Company unveiled the results of its quarterly index review. The Hang Seng Index will add WEICHAI POWER (02338) and Hua Hong Semiconductor to its constituent list, increasing the total number of index members from 93 to 95. The changes are set to take effect after the market close on Friday, September 4, and will become official on Monday, September 7.

Analysts at Changjiang Securities have previously noted that compared to Caterpillar, Weichai's core businesses span heavy-duty trucks, forklifts, and agricultural machinery, each with independent growth drivers that provide a strong defensive quality against economic cycles. In the AIDC power sector, Weichai has established a presence in diesel generators, gas turbine units, and solid oxide fuel cells. Leveraging its domestic supply chain, the company maintains ample production capacity and boasts an expansion pace that outpaces international competitors. As primary power delivery begins and capacity dividends materialize, Weichai's long-term growth potential could surpass that of Caterpillar.