It is a pledge loan agreement with securities as collateral. The essence of repurchase agreement is pledge. Repurchase agreement means that commercial banks and other financial institutions, while selling securities and other financial assets, sign an agreement with buyers of financial assets to repurchase the sold securities at the original price or agreed price after a certain period of time, so as to obtain immediately available funds. The buyer also promises to sell the buyer's securities back to the seller in the future. On the surface, the repurchase agreement is a short-term transaction of financial securities, but in fact it is a short-term financing with financial assets as collateral. Securities sellers pledge loans with a certain amount of securities (the proceeds from the sale of securities are the loan amount), provided that the securities are repurchased within a certain period of time, and the repurchase price is higher than the sale price, and the difference between them is the loan interest.