Daqo New Energy Corp (DQ) stock surged 6.82% in pre-market trading on Friday, riding the wave of optimism sweeping through China's solar sector. The rally comes on the heels of 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 broader Chinese solar industry also received a boost from China's industry ministry, which unveiled a 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 fueled investor enthusiasm. As a result, several major players in the Chinese solar market, including GCL Technology Holdings, Trina Solar, and Tongwei, experienced significant stock price increases, further bolstering sentiment around Daqo New Energy Corp.