Yes, a repurchase agreement is a trading agreement that sells securities and agrees to repurchase securities at an agreed price at some future time. Transactions conducted under this agreement are called repurchase transactions. Repurchase transaction is one of the means by which the central bank regulates the liquidity of the whole society. The repurchase agreement has the following characteristics: ① It integrates the profitability and liquidity of funds and increases the interest of investors. Investors can sign a repurchase agreement with borrowers according to their own capital arrangements, and increase the income of funds on the premise of ensuring that funds can be recovered at any time and used for other purposes. ② It enhances the liquidity of long-term bonds and avoids the possible losses caused by the sale of long-term assets by securities holders. ③ Strong security. Repurchase agreements are generally short-term, with 100% bonds as collateral. Investors can withdraw funds in time according to changes in the capital market and avoid the risks of long-term investment. ④ Longer-term repurchase agreements can be used for arbitrage. If a bank obtains funds through a repurchase agreement at a lower interest rate and then lends them at a higher interest rate, it can obtain a spread.

legal ground

Article 142 of the Company Law of People's Republic of China (PRC) * * * A company may not purchase its shares. However, except for one of the following circumstances: (1) reducing the registered capital of the company; (2) Merging with other companies holding shares of the Company; (3) Using shares for employee stock ownership plan or equity incentive; (4) Shareholders request the company to purchase their shares because they disagree with the resolution of merger or division made by the shareholders' meeting; (5) Using shares for the conversion of corporate bonds convertible into shares by listed companies. (6) The need for listed companies to safeguard their own values and shareholders' rights and interests. The company's acquisition of shares of the company under the circumstances specified in Items (1) and (2) of the preceding paragraph shall be decided by the shareholders' meeting; Where a company purchases its shares under the circumstances specified in Items (3), (5) and (6) of the preceding paragraph, it may make a resolution at a board meeting attended by more than two thirds of the directors in accordance with the provisions of the articles of association or the authorization of the shareholders' meeting. After the company purchases its shares in accordance with the provisions of the first paragraph of this article, it shall be cancelled within 10 days from the date of acquisition if it falls under the circumstances of item (1); In case of items (2) and (4), it shall be transferred or cancelled within six months; In case of items (3), (5) and (6), the total number of shares held by the company shall not exceed 10% of the total number of shares issued by the company, and it shall be transferred or cancelled within three years.