The transformation and upgrading of Wuhan Qiaokou Old Industrial Zone into Hanjiang Bay Artificial Intelligence Industrial Park, Beijing Shougang Park building an international science and technology innovation center with industrial heritage, Hefei Hechai 1972 Cultural and Creative Park gathering fashion, creativity, and technology industry communities to release cluster effects... A number of old block factories that have started renovation and renewal are releasing new economic vitality.
Recently, the Ministry of Housing and Urban Rural Development and six other departments jointly issued the "Guiding Opinions on Promoting the Renovation and Upgrading of Old Street Blocks and Factory Areas" (hereinafter referred to as the "Guiding Opinions"), which clarifies the renovation and upgrading path based on four key spatial categories.
The Guiding Opinions take "promoting functional transformation" and "promoting business upgrading" as the core guidance for the renovation and upgrading of old block factories. Through refined functional classification, create differentiated and iconic highlight spaces and city business cards for various regions, and propose specific policy directions. For example, the "Guiding Opinions" propose to "revitalize and utilize industrial cultural resources with outstanding value such as industrial heritage" in old factory areas, "deeply explore the cultural genes of old residential blocks", and "empower the transformation and improvement of blocks with culture".
Zheng Degao, Vice President of the China Academy of Urban Planning and Design, stated that the "Guiding Opinions" emphasize the need to form a sustainable operating model after the renovation, so that the existing space can continue to generate comprehensive economic, social, and cultural benefits, avoid the dilemma of "heavy construction and light operation" after the renovation is completed, provide a carrier for business iteration and scene innovation, help cultivate characteristic consumption and community service businesses, continuously release domestic demand potential, and become an important support for cultivating new driving forces in urban transformation.
Zheng Degao believes that in the direction of renovating various old block factories, projects that can be prioritized and accelerated for implementation generally have three basic conditions. Firstly, the ownership of assets is relatively clear and the implementation is highly operable; secondly, the demand for urban medical examinations is clear and the demands of the masses are urgent; thirdly, it has high-quality resource endowments such as location, historical culture, or ecology
The "15th Five Year Plan for Urban Renewal" proposes the goal of renovating 1500 old block factories. Experts point out that with the comprehensive promotion of the renovation of old block factories, a considerable investment increment will be formed, which is expected to leverage the trillion dollar market space as a whole.
Data shows that as of now, more than 66000 urban renewal projects have been implemented nationwide, with a total investment of 2.6 trillion yuan. The comprehensive effects brought by the implementation of urban renewal actions are gradually emerging. The coverage has gradually expanded from the renovation of old residential areas to diverse areas such as street revitalization, industrial upgrading, and infrastructure improvement.
At the level of financial security, the construction of a diversified investment and financing system is accelerating. At the central level, special support will be provided for urban renewal through investment within the central budget, with a planned funding scale of 97 billion yuan by 2026; At the local level, the issuance of special bonds for urban renewal continues to accelerate, providing financial support for renovation projects.
According to incomplete statistics from the China Academy of Sciences, in the first three quarters of 2026, the issuance of special bonds related to urban renewal exceeded 250 billion yuan. Among them, the issuance of special bonds related to urban village renovation amounted to about 100.9 billion yuan, a year-on-year increase of 23.0%, and the proportion of special bonds related to urban renewal increased to nearly 40%. Beijing, Chongqing, Sichuan, and Guangdong have maintained a high level of issuance of special bonds related to urban village renovation. The renovation of old block factories mainly focuses on the conversion of existing space functions and upgrading of business formats, which will provide new project reserves for urban renewal special bonds.
In terms of innovative investment and financing mechanisms, the Guiding Opinions propose to "standardize the implementation of new mechanisms for government and social capital cooperation" and "support eligible projects to issue real estate investment trusts (REITs) in the infrastructure sector".
Experts believe that to fully tap into the economic value of the renovation and transformation of old block factories, it is necessary to further establish a value balance mechanism with clear rights and responsibilities, predictable benefits, and shared risks, and support various enterprises to participate in the renovation and improvement of old block factories.
On the one hand, we should do a good job in the hierarchical combination and linkage of funds. We should make good use of financial subsidies, update special debt support for public welfare, and rely on policy bank funds to provide long-term support. For projects with stable operating cash flow, we should use tools such as urban renewal REITs and asset securitization to open up the investment loop of 'input exit reinvestment'. ”Zheng Degao stated that on the other hand, it is necessary to clarify the boundaries of rights and responsibilities for multi-party investment. The government shall coordinate planning, optimize approval, undertake public welfare investments such as supporting facilities, and provide policy guidance and risk prevention and control; State owned platforms support the implementation of projects by participating in ownership sorting, space preparation, and other related work based on actual project participation; Social capital relies on professional advantages to participate in market-oriented content such as business operation and industry introduction. (Looking into the New Era)