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Journal of Chinese
Architecture and Urbanism Urban regeneration market mechanism research

of public and private stakeholders in formulating and regeneration in the second stage has produced plentiful
implementing urban regeneration management decisions results, and scholars generally agree that enterprises and the
in the city center (Stone, 1989, 1993, 1996, 2005). In the government often form urban entrepreneurialism through
field of public administration research, the governance collusion in the process of land commercialization (Jiang
structure research in the field of public management focuses et al., 2009), which promoted the rapid development of
on different subjects, such as managers, producers, and China’s urbanization, but has also exposed some problems
users, and their cooperative and interactive relationships in in certain urban regeneration projects. For example, Zhu
different public affairs. Williamson divided the governance (1999) believes that many China’s state-owned enterprises
structure into different types, such as unified governance, rely on socialist land use rights to seek land rent and change
market governance, bilateral governance, and tripartite planning parameters such as plot ratio and land function
governance, according to the types of transaction objects based on corporate interests, resulting in “corruption
and the asset specificity, uncertainty, and transaction times in land use planning” in urban regeneration. Zhang et
in the transaction process (Williamson, 1975). Ostrom al. (2013) believe that the essence of urban regeneration
(1996) proposed a polycentric governance structure is the process of urban governments’ industrial and
based on his empirical research on public pool resources, commercial capital; a lot of them use the replacement of
emphasizing that autonomous forces play a fundamental urban space types and locations to obtain land rent income
role in the field of public affairs. and realize capital appreciation and accumulation. He &
Wu (2005) argued that in the process of real estate-led
Different governance models have been formed in demolition and reconstruction, a pro-growth alliance is
different urban regeneration projects in different countries formed between local governments and developers, and
and cities, and all market players play an important role in the developers play the role of providing capital under
general. The United States (Brower, 1971; Marcello, 2021), the the supervision of the government, but this model results
United Kingdom (Rob, 1999), the Netherlands (Michiel & Erik, in unfair redevelopment. Tian (2018) believes that in the
2011), and other places have established urban development regeneration of urban villages, which is widely promoted at
or regeneration companies to promote economic growth and this stage, there are problems of imbalance between public
asset reconstruction (Chris & Annekatrin, 2000), which is the interests, collective interests, and private interests, so it is
main driving force regenerating the area with extensive public- necessary to comprehensively analyze its pros and cons
private partnerships (Chris et al., 2003). Vesalon and Cretan from the perspectives of society, collection, and economy.
believe that the market mechanism of urban regeneration
is an important measure for the development of a free The above-mentioned research shows that the
market economy (Vesalon & Cretan, 2019). Sorina divided market is an important force in urban regeneration, and
developers into three types that contribute to the gentrification their experience and challenges can be summarized in
of neighborhoods, including professional developers who three aspects. First of all, the operation mode of urban
purchase property, redevelop it, and resell it, occupier regeneration projects presents different characteristics in
developers who buy and redevelop the property and inhabit it different urban environments and different developmental
after completion, and landlord developers who rent to tenants stages. The current research on governance structure mainly
after rehabilitation in the research on the market mechanism focuses on demolition and reconstruction projects, which
of urban regeneration in Romania (Sorina et al., 2009). Peter have large space for economic value-added characteristics
considered funding implications for environmental, social, (Adair & Berry, 1999), and the motivation of multiple
and community issues as the fundamental aspects of urban parties to participate is relatively strong. However, there are
regeneration (Peter & Hugh, 2003). few studies on the “micro-regeneration” model in the new
era that prevents large-scale demolition and reconstruction.
China’s urban regeneration also went through three Second, there are differences in the participation paths of
stages as a whole before the reform and opening-up in 1978, multiple subjects in different projects. It is necessary to focus
including the government-led stage aimed at improving on project types and pay attention to the roles played by
people’s livelihood and housing security, the government- different subjects. Existing research focuses on the collusion
led stage aimed at economic development with the relationship between the government and enterprises. In
real estate boom and cooperation between real estate actual operation, different types of regeneration projects,
development enterprises and governments from 1978 to due to their different functions, profit mechanisms,
around 2010, and the stage of people-oriented development participants, and benefit distribution, have relatively
and multi-governance by the government, enterprises, different cooperation models for different entities. Therefore,
and society after the urbanization rate exceeds 50% in there are many forms of governance structure in current
2010 (Yang & Chen, 2020). The research on China’s urban urban regeneration projects, including government-led

Volume 6 Issue 1 (2024) 3 https://doi.org/10.36922/jcau.0885