Weichai Power's stock fell sharply by 5.03% during intraday trading, extending recent declines as multiple negative factors weighed on investor sentiment.

The drop followed a rating downgrade by Daiwa from "Buy" to "Outperform," which signaled reduced confidence despite the firm simultaneously raising its target price. Additionally, significant capital outflows were recorded, with institutional funds showing a net outflow of nearly 10 million yuan and speculative capital experiencing outflows exceeding 100 million yuan.

Sector-wide pressure in Construction Machinery and Heavy Trucks contributed to the decline, with Daiwa noting potential short-term headwinds for Weichai Power's LNG heavy truck business if Middle East conflicts de-escalate, adding to near-term uncertainty for the company.