Daqo New Energy Corp (DQ) stock surged 8.59% in pre-market trading on Friday, as optimism swept through China's solar sector following encouraging statements from the company's Chief Financial Officer and supportive measures from Chinese regulators.

In a Bloomberg TV interview on Thursday, Daqo New's CFO declared that the polysilicon sector, a crucial component of the solar industry, has already hit rock bottom and is now on a path to recovery. This assertion has instilled confidence in investors, particularly as the company anticipates a return to profitability before the year's end. Adding to the positive outlook, the CFO revealed that a government-backed plan to purchase and decommission over 1 million tons of industry capacity is progressing, potentially alleviating oversupply concerns.

The rally in Daqo New's stock is part of a broader surge in Chinese solar stocks, fueled by China's industry ministry's plan targeting an annual average revenue growth of at least 5% for the sector. This government initiative, coupled with efforts to curb excessive competition and stabilize prices, has bolstered investor sentiment across the industry. As a result, several major players in the Chinese solar market, including GCL Technology Holdings, Trina Solar, and Tongwei, also experienced significant stock price increases, further reinforcing the positive outlook for Daqo New Energy Corp.