Walking into the Beijing Lumi Cang New Audiovisual Industrial Park located in Dongcheng District, Beijing, the first thing that catches the eye is the Lumi Cang, a Beijing level cultural relic protection unit with thick walls and nearly 500 years of history. Beside it stands the upgraded and renovated Republic of China small building and modern Soviet style architectural complex. This is a representative project of Beijing's urban renewal and a microcosm of the promotion of urban renewal in many places. The recent Central Urban Work Conference and the Political Bureau Meeting of the Communist Party of China Central Committee have both made arrangements for urban renewal. Experts believe that with strong policy support, urban renewal is shifting from simple physical space transformation to governance paradigm transformation, releasing enormous economic value and development potential. The Beijing Lumi Cang New Audiovisual Industrial Park, supported by policies, started construction in 2021 and will be completed by the end of 2022. Through renovation and modern technology integration, it will transform into an industrial space that integrates cultural creativity, technological display, and commercial services. This project is a representative project in the "2024 Beijing Urban Renewal White Paper" released in May this year. The relevant person in charge of Jihua Shouwen (Beijing) Cultural Technology Co., Ltd., the operator of the park, told China Securities Journal reporters that in the future, the park will focus on the core goal of "building a global audio-visual industry center in Beijing" and continuously improve the new audio-visual digital content production industry chain based on new generation information audio-visual technology applications such as 5G, AI, cloud computing, blockchain, and big data. Besides Beijing, many places are also accelerating urban renewal. Wang Zhen, Director of the Shanghai Municipal Commission of Housing and Urban Rural Development, recently stated that the "Shanghai Urban Renewal Action Plan (2026-2028)" will be formulated to further clarify the key tasks and renewal projects for the next three years. The Sichuan Urban Renewal Group was recently unveiled and established, which will carry out the renovation and utilization of existing buildings, promote the renovation of old urban communities, and strengthen the construction and renovation of urban infrastructure. The Chengdu Housing and Urban Rural Development Bureau recently released a list of opportunities for the "unveiling and leading" of urban renewal projects in 2025, which includes a total of 12 projects. Financial support is gradually increasing. On June 4th, the Economic Construction Department of the Ministry of Finance and the Urban Construction Department of the Ministry of Housing and Urban Rural Development released the "Announcement of the Results of the 2025 Central Financial Support for Urban Renewal Action", which shows that in the next few years, the central government plans to subsidize more than 20 billion yuan to support 20 cities including Beijing, Tianjin, Tangshan, and Baotou to fill the gaps and weaknesses in urban infrastructure and explore the establishment of sustainable urban renewal mechanisms. With a series of policy supports, urban renewal will bring more economic value. Li Xuesong, the head of the Department of Economics at the School of Economics and Management of Wuhan University, believes that urban renewal is essentially a transformation of the urban governance paradigm, with five core changes: shifting from land finance dependence to spatial value operation, shifting from government monopoly to diversified co governance, shifting from material space transformation to social network reconstruction, shifting from incremental expansion to stock tapping, and shifting from economic priority to comprehensive value balance. The future urban renewal will no longer be a simple physical spatial transformation, but a governance practice that reconstructs social relations, stimulates innovation vitality, and achieves sustainable development through spatial production. Listed companies seize opportunities in the Beijing Friendship Store Park, where the enclosed courtyard style still exists in the 1980s. Around the 800 square meter green space transformed from a parking lot, creative formats such as craft beer, coffee, and experiential stores gather, and customers' average stay time extends to 3-4 hours; After the upgrade and renovation of Wangfujing Joy Shopping Center, trendy entertainment, vinyl music, skateboarding, specialty catering and other formats have attracted young consumers to return to the Wangfujing business district, with an average daily passenger flow of nearly 50000 and weekend passenger flow exceeding 60000; The Shuang'an Shopping Mall, which carries more than 30 years of urban memory, has undergone spatial transformation, introducing a large number of first stores and specialty restaurants, and the overall customer flow has increased by 30% compared to before the transformation... These data sets have become the most direct proof for Wangfujing Group to obtain business growth through urban renewal. Urban renewal is the key to solving the challenges of the era of commercial real estate stock. By promoting innovation in business combinations, spatial scenarios, and operational models, it effectively avoids homogeneous competition, enhances the overall vitality and attractiveness of the industry, and ultimately improves the commercial charm and competitiveness of cities. ”The relevant person in charge of Wangfujing Group told reporters. The person in charge admitted that the urban renewal project directly promoted the revenue of related properties and the overall performance growth of the group, and is one of the core levers for the company to respond to market changes and achieve sustainable growth. The company is currently actively seeking and promoting new urban renewal opportunities nationwide, replicating and upgrading Beijing's successful models and experiences according to local conditions. Urban renewal not only activates the commercial momentum of the retail industry, promotes the upgrading of existing resources, but also brings new opportunities for sustainable development to listed companies. In response to urban renewal, Fujie Environmental Protection is continuously strengthening its business layout of 'sewage sludge resource utilization and energy utilization+dual carbon comprehensive services+green and clean energy'. ”Li Wenjing, the Secretary of the Board of Directors of Fujie Environmental Protection, said in an interview with reporters that in the first half of this year, the company participated in the second phase expansion project of Shanghai Taihe Sewage Treatment Plant, which has completed commissioning and trial operation. Both the first and second phases of the project adopt Fujie Environmental Protection's low-temperature vacuum dewatering and drying integrated technology, reducing the sludge moisture content to below 40%. The second phase project of Shenzhen Futian Water Purification Plant, in which the company participates, is also underway and will become the largest double layered and semi underground water purification plant in Asia after completion. Li Wenjing revealed that in the future, Fujie Environmental Protection will continue to promote the transformation of urban environmental infrastructure such as sewage and garbage plants into energy and resource factories through advanced technological innovation, striving to achieve the "three-step leap" from pollution control, energy conservation and carbon reduction, to circular economy. Many institutions believe that urban renewal is expected to promote innovative development in the real estate industry. According to a research report by CITIC Securities, high-quality urban renewal requires higher standards for creating high-quality residences, livable urban spaces, and convenient surrounding facilities. Real estate companies with strong product capabilities and layout in core cities are expected to deeply participate in high-quality urban renewal work. According to a research report by Guotai Haitong Securities, urban renewal is expected to become an important lever for the development of the real estate industry, promoting the overall healthy and stable development of the industry. Experts believe that urban renewal projects have a long cycle and cash flow characterized by high initial investment, slow mid-term returns, and sustained output in the later stage. It is recommended to build a support system that integrates funds, policies, and technology. In terms of strengthening support and guarantee, the General Office of the Communist Party of China Central Committee and the General Office of the State Council issued the "Opinions on Continuously Promoting Urban Renewal Action" in May, proposing to establish a sustainable urban renewal model guided by the government, operated by the market, and participated by the public. Li Xuesong suggested promoting the widespread participation of social capital in urban renewal projects, establishing market-oriented operation platforms, such as setting up a special fund for urban renewal, attracting long-term capital such as insurance and pension funds, and leveraging social capital through the "parent fund+sub fund" model. In addition, innovative land policies and property rights mechanisms can be implemented, such as sharing the benefits of land appreciation, allowing original property owners to participate in urban renewal through pricing and shareholding, and sharing of appreciation. For the operators of urban renewal projects, activating long-term benefits through market-oriented operations is an important way to promote the balance of economic and livelihood accounts in urban renewal projects and promote sustainable development of the projects. Most commercial real estate urban renewal projects are non-standard projects, which rely more on consumer experience, stay, and community value conversion compared to traditional shopping malls. ”The relevant person in charge of Wangfujing Group mentioned above said that on the one hand, it is recommended that the project operator provide personalized support to merchants through the "one store, one strategy" approach, not only focusing on bag handling rate and average customer value, but also paying attention to extending stay time, creating emotional value, and building brand awareness; On the other hand, some stores based on the renovation of "old and small" areas have limited space and need to break the traditional investment model and introduce innovative formats. Old buildings can be used as containers for creativity and historical elements can be integrated into new scenes. Regarding the establishment of a sustainable urban renewal profit model, Li Xuesong believes that a value layered operation model can be considered. Firstly, there is spatial stratification, such as the three-dimensional development of above ground and underground areas, forming a three-dimensional value network of "integration of above ground industry and city, and complementary underground functions". Next is the release of time value gradient, adopting a phased development and functional iteration strategy. In addition, dynamic adaptation of mixed functions, such as allowing some areas of industrial land to be converted into supporting facilities such as community commercial and talent apartments. (New Society)