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June 4 (NBD) -- China's solar power-related stocks dropped sharply in morning trading on Monday after the country's three government agencies issued new rules for investment and subsidies for photovoltaic (PV) installations to contain industry size last Friday.

The National Development and Reform Commission, the Ministry of Finance and the National Energy Administration announced a cut in the national feed-in tariff for newly operated PV power stations by 0.05 yuan (0.8 cents) per kilowatt-hour and a reduction of the same amount in subsidies for power generated by distributed PV projects.

Besides, there will be no construction arrangement for new solar power projects for the year of 2018, but a total capacity of 10GW will be designated to distributed PV projects this year, according to the announcement.

Influenced by the news, stocks of Tongwei Co Ltd (600438.SH) dropped by the 10 percent daily-limit, and LONGi Green Energy Technology Co., Ltd (601012.SH) stocks also plunged by 9.98 percent to 20.12 yuan (3.1 U.S. dollars) by the midday break.

Besides, China Shipbuilding Industry Group Power Co., Ltd (600482.SH) and TBEA Co., Ltd. (600089.SH) tumbled by 7.78 percent and 5.94 percent, respectively.

Email: gaohan@nbd.com.cn