Bank money shortage has made exchange reverse repos popular. This is a cash management tool in which investors lend funds to financial institutions at an agreed interest rate and receive principal and interest within an agreed period of time, using the treasury bonds or corporate bonds held by the borrowing institution as collateral. Exchange reverse repurchases were originally popular among people, but due to the recent shortage of funds, they have become an important short-term financing method for financial institutions outside the inter-bank lending market. \x0d\\x0d\　As inter-bank market lending rates continue to soar, exchange reverse repurchase yields also continue to rise. Taking the recent reverse repurchase varieties of the Shanghai Stock Exchange as an example, the annualized yields of 1-day, 2-day, 3-day, 7-day and 14-day reverse repo varieties are all above 6%. The highest 1-day variety once rose to 32%, keeping pace with the rise in inter-bank lending rates. \x0d\\x0d\　Exchange reverse repurchase is regarded as an extremely low-risk investment because it uses treasury bonds as collateral, but the operational risk of securities companies cannot be ignored. If securities companies use short-term funds for long-term stock investments through frequent repurchase operations, the risk of stock market price fluctuations will be transmitted to the repurchase market, and maturity redemption risks are likely to occur. In 2004, as the stock market continued to decline, many companies such as Minfa Securities, Jianqiao Securities, and Hantang Securities successively experienced huge financial black holes caused by the repurchase of government bonds. In May of that year, securities firms misappropriated the amount of customers' Treasury bonds and repurchased them to amplify the amount of maturing arrears to more than 100 billion yuan. \x0d\\x0d\ In a period when both the capital market and the bond market are sluggish, once financial institutions encounter tight capital chains, they will inevitably engage in the behavior of "removing the east wall to pay for the west wall", misappropriating bonds held by customers or conducting so-called three-party supervision. Entrust financial management. Investors should be cautious about this, and regulators should take corresponding preventive measures.