On the morning of July 3, the low-priced stocks continued to rebound. At noon, many "1 yuan stocks" and "low-priced stocks" dominated the top gainers list, with Changjiang Pharmaceutical Group, Fujian Dongbai, Kangxin New Materials, Beijing Hualian Department Store and other stocks all hitting the limit, and China Grand Automotive Services Group even recorded three consecutive boards.

Under the pressure of delisting due to face value, low-priced stocks are accelerating their decline, and A-shares are facing the risk of delisting again. Wind data shows that as of the close of July 2, the number of A-shares with a closing price of less than 1 yuan reached 22, and the number of A-shares with a closing price of less than 2 yuan reached 205. Therefore, low-priced stocks have taken action to help themselves, and recently many companies, including Wintime Energy, Zhongfu Straits, Dezhan Healthcare, Guangdong Meiyan Jixiang Hydropower and Shenzhen Heungkong Holding, have all launched buyback plans.

Dezhan Healthcare disclosed its plan to repurchase company's shares on July 2. The company plans to repurchase its own shares with its own funds, and the repurchased shares will be used to cancel and reduce the registered capital. The total amount of repurchase funds is no less than 200 million yuan and no more than 300 million yuan, and the repurchase price range is not more than 3.59 yuan. It is estimated that the total number of repurchased shares will range from 55.7103 million shares to 83.5655 million shares, accounting for about 2.57% to 3.86% of the company's current total share capital.

Regarding the purpose of this buyback, Dezhan Healthcare said that it is based on recognition of the industry's prospects, confidence in the company's future development and value judgment, and to further enhance investor confidence, stabilize investor expectations, and safeguard the interests of the general shareholders. After comprehensively considering factors such as the recent secondary market performance of the company's stock, the company's development strategy, operational situation, and financial situation, the company plans to repurchase its own shares with its own funds, and the repurchased shares will be used to cancel and reduce registered capital.

Guangdong Meiyan Jixiang Hydropower announced on the evening of July 2 that it plans to repurchase company's shares of 40-60 million yuan, and the repurchased shares will be used to maintain the company's value and shareholder rights, with a repurchase price not exceeding 3.14 yuan/share.

On the same day, Shenzhen Heungkong Holding announced that it plans to repurchase its own shares of 30-60 million yuan, and the repurchase price does not exceed 2.47 yuan/share. The repurchased shares will be used for later implementation of employee stock ownership plans or stock-based incentive plans, or for the conversion of convertible corporate bonds into stocks issued by listed companies.

In addition, Wintime Energy and Zhongfu Straits, whose share prices are less than 2 yuan, also took action recently to repurchase their own shares.

On the evening of July 1, Wintime Energy announced its plan to repurchase company's shares of 150-300 million yuan, with a repurchase price not exceeding 189 million yuan. The repurchased shares will be used for employee stock ownership plans or stock-based incentive plans.

From the purpose of the buyback, Wintime Energy said that it is based on confidence in the company's future development and high recognition of the company's value, in order to improve the company's long-term incentive mechanism, fully mobilize the enthusiasm of employees, increase cohesion, effectively combine the interests of shareholders, the company and employees, promote the stable, healthy and sustainable development of the company, enhance public investor confidence in the company, promote the reasonable return of the company's stock price, and effectively protect the legitimate rights and interests of all shareholders. This is a decision made in conjunction with factors such as the company's operational and financial situation.

There are similar situations for Zhongfu Straits. On the evening of June 30, the company announced a plan to repurchase its own shares of 80-160 million yuan, which will be used to maintain the company's value and shareholder rights. The repurchase price does not exceed 2.52 yuan/share.

Tian Lihui, the Director of the Financial Development Research Institute of Nankai University, believes that the above operations of low-priced stock companies can convey confidence in the company's future development and attract new investors. However, in the long run, the stability and rise of stock prices still need to be supported by the company's fundamentals.

However, the most fundamental way for listed companies to boost market confidence and stock prices is to increase their growth and innovation capabilities. Zheng Zhigang, a professor of finance at the School of Finance at the China University of Political Science and Law, believes that increasing holdings, buybacks, and mergers and acquisitions are all good ways of market value management, which indicates that stock prices are undervalued. But fundamentally, listed companies must adhere to core business development, continuously enhance their core competitiveness, and strengthen their R&D efforts. Innovation is what capital is pricing for growth.