June 6 (NBD) -- Tongwei Co., Ltd (600438.SH) and LONGi Green Energy Technology Co., Ltd (601012.SH) released filings Wednesday to explain their recent stock volatility. 

According to their filings, the decline deviation value of the companies' closing prices surpassed over 20 percent accumulatively in the past three trading days (namely, June 1, 4, and 5), which constitute abnormal volatility.

In response, the two companies said the notice on matters relevant to PV power generation in 2018 released by the National Development and Reform Commission, Ministry of Finance of China and National Energy Administration, which is aimed at reducing subsidies and cutting overcapacity, will place pressure on and bring challenge to the PV industry in the short term.

Meanwhile, they have confirmed that there is no important corporate information that should have been disclosed through conducting self-examination and checking with their controlling shareholder or actual controller.

Both companies underscored their PV power production is highly efficient and they can speed up the elimination of backward production capacities in the market based on their edge in technologies, costs and brands.

Tongwei also said it will also seek growth in overseas markets.

Email: tanyuhan@nbd.com.cn