Exhibit 4.16


(Summary Translation)


 


Loan Agreement with Chongqing Rural Commercial Bank, Wanzhou
Branch


 


	Date of the Agreement	
        October 10, 2018

	 	 
	Lender (Party A)	
        Chongqing Rural Commercial Bank, Wanzhou Branch

	 	 
	Borrower (Party B)	
        Xinjiang Daqo New Energy Co., Ltd.

	 	 
	Type of loan	
        Short term working capital loan 

        

	 	 
	Use of loan	
        Working capital for purchase of raw materials and supplementary
        materials and other operational purposes

        

	 	
	Amount	
        RMB33 million

	 	
	Term of loan	
        1 year, from October 10, 2018 to October 9, 2019

	 	 
	Interest rate	
        Benchmark rate, plus 18%

	 	
	Penalty rate	
        In the event of failure to repay the loan in accordance with
        the Agreement, the penalty rate shall be 50% over the interest rate

         

        In the event that Party B does not apply the loan according
        to the Agreement, the penalty rate shall be 100% over the interest rate

         

	Repayment of interest	
        Interest shall be paid monthly at the 20th
of each month

	 	 
	Repayment of principal	
        Principal shall be repaid in full by the maturity date
of the loan

	 	 
	Party A’s rights and obligations	
        (1) Party A has the right to be informed about Party B’s
        operations, financial conditions and inventory, supervise and inspect the use of the loan, and require Party B to provide financial
        statements and other documents and information;

         

        (2) Party A has the right to deduct any amount due under the
        Agreement from the balance of the account Party B opens with Party A under the Agreement;

         

        (3) Party A has the obligation to fund the loan in accordance
        with the Agreement;

         

        (4) In the event that Party B fails to perform its obligations,
        Party A has the right to disclose to the public such default by Party B;

         

        (5) Party A shall keep information regarding Party B’s
        liabilities, financial condition and operations confidential except for reasonable internal use by Party A, use for corporate credit
        purposes and other permissible uses under laws and regulations;

         

        (6) Party A has the right to participate in Party B’s
        material financing , asset disposal, merger, spinoff, restructuring, liquidation and dissolution and other activities in order
        to protect Party A’s creditor’s rights.



 




     

     


    

  


	Party B’s rights and obligations	
        (1) Party B has the right to use the loan proceeds in accordance
        with the Agreement;

         

        (2) Party B shall use the loan in accordance with the Agreement,
        shall not misappropriate the loan and shall ensure compliance with law;

         

        (3) Party B shall repay the principal and interest when due
        and payable;

         

        (4) Party B shall promptly notify Party A in writing and implement
        repayment measures acceptable to Party A in the event that there shall be a change that affects the rights and liabilities under
        this Agreement, threatens Party B’s ordinary operations or materially and adversely affects Party B’s ability to perform
        the repayment obligations under the Agreement (including but not limited to suspension, termination, closure, bankruptcy, suspension
        or cancellation of manufacturing or sale permit or operating license, illegal activity by Party B, its legal representative or
        main responsible person, material safety accidents, material litigation, material difficulty of its operations or deterioration
        of its financial condition);

         

        (5) In the event of any partial or complete loss of the ability
        of the guarantor under the Agreement to guarantee the loan (including but not limited to suspension, termination, cancellation,
        bankruptcy, involvement in litigation or arbitration, administrative penalty or operating loss) or in the event of any loss to
        security or pledges under the loan, Party B shall promptly notify Party A and provide other guarantee acceptable to Party A;

         

        (6) Party B shall notify Party A in writing within 15 days following
        any change to the registration of certain matters, including but not limited to name, registered capital, legal representative,
        legal address and scope of operations;

         

        (7) Party B shall bear any loss, risk or liability in the event
        that the proceeds of loan are seized or withheld by any competent authority after Party A credits Party B’s account;

         

        (8) Throughout the term of the loan, without Party A’s
        prior consent, Party B shall not dispose of any material assets (other than to repay the loan to Party A) and shall not make any
        distributions to its shareholder;

         

        (9) Party B shall timely report to Party A any related party
        transaction involving over 10% of Party A’s net assets in writing, including the relationship among the parties to the transaction,
        nature, subject, amount of the transaction, and pricing policy.

         



 




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	Party B’s Covenants	
        (1) Compliance with law and regulation;

         

        (2) Timely and periodic provision to Party A of financial statements
        and true, accurate, complete and effective information on accounts payable and receivable, inventory details and activities of
        capital collection account;

         

        (3) Diligent and active cooperation with Party A’s supervision
        of loan funding, post-funding supervision and other relevant inspections;

         

        (4) Prompt notice to Party A in the event of any material adverse
        effect on Party B’s repayment abilities and implementation of repayment measures acceptable to Party A;

         

        (5) No evasion of entrusted payment by Party A;

         

        (6) Party A has the right to demand prepayment in light of cash
        collection by Party B;

         

        (7) In the event of any merger, spinoff, share equity change
        or transfer, change of operation method (such as contracting or lease), material asset transfer or disposal, share equity pledge,
        investment, guarantee, material increase of debt financing, new project and other material matters, Party B shall notify Party
        A in advance in writing, and shall not be engaged in these actions without performing obligations under the loan and providing
        guarantee or other risk management measures acceptable to Party A.



 




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