Abstract: There are primary developments on Share repurchase in Chinese legal system and practice,but its deficiency is so obvious that we should further study it.We chiefly apply some methods such as function analysis and deduction in economic logic to study share repurchase.Generally,lawful conditions applying to share repurchase should be developed and defined in company legislation.Share repurchase system should not become a policy tool that just may temporarily be used,and share repurchase lack of legitimacy must be prohibited.It is necessary to balance and harmonize rights and its benefits of those relating to share repurchase,so principles or methods on share repurchase price should be confirmed according to the different conditions of share repurchase.The main way of share repurchase should be similar to Dutch auction.When shares have been repurchased and temporarily been saved,rights based on repurchase share should be suspended.