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It's a figure of Lu Dongbin (also spelled Lu Tung-Pin), one of the Eight Immortals of Taoism.
Quoted from Learn Religions:
Lu Dongbin’s emblem is the magic two-edged sword, which dispels evil spirits, and gives him the power of invisibility. He’s also frequently shown carrying a fly-whisk and is dressed and honored as a scholar. He’s known for being a “ladies’ man” and for being prone to bouts of drunkenness.