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Journal of Chinese
Architecture and Urbanism Urban regeneration market mechanism research

subjects, making it difficult for multiple subjects to form
a consensus on transformation in Beijing (Tang & Zhang,
2021). The complexity of the interest pattern and the reality
has led to difficulties in starting the regeneration project.
Beijing’s current management methods make it difficult to
effectively manage the formed property rights pattern. The
degree of complexity makes it difficult for multiple subjects
to form a consensus on transformation (You et al., 2022).
In the existing research, the objects of Beijing’s urban
regeneration mainly include urban villages (Xu & Noriko,
2021), shantytowns (Fan et al., 2023), industrial plants
(Deng et al., 2020), historical relics (Yue, 2008), and so
on, which failed to cover the five types of regeneration Figure 1. Urban regeneration governance structure and benefit
objects in the “Beijing Urban Regeneration Regulations.” distribution analysis framework. Source: Diagram by the authors
In addition, Beijing’s urban regeneration dynamic
mechanism has undergone fundamental changes under the owner leases the space to the lessee, and the implementing
requirements of reducing volume and improving quality. entity raises project costs from the financial institutions
At this stage, the governance structure of Beijing’s urban and other investment entities through loans and funds,
regeneration is more diverse, and its benefit distribution among other sources. The original property owner pays
mechanism is more complicated. It is necessary to clarify and entrusts the construction unit to carry out renovations,
the participation path and benefit distribution method of and so on. In essence, capital gains are exchanged for space
market entities. use rights or property rights, technical and human services,
3. Research framework, methods, and case financing guarantees, and the like. In addition, borrowing,
employment, and leasing, in a broad sense, are all sales
introduction relationships. The principal-agent relationship refers to the
3.1. Research framework contractual relationship in which the principal is entrusted
to the agent to operate when the principal cannot directly
Based on identifying the special institutional, economic, exercise the power. In urban regeneration, it mainly refers
and social environment of Beijing’s urban regeneration, to the system guarantee or financial support given by
this study focuses on analyzing the marketization the government to the implementation subject and the
mechanism of urban regeneration from the aspects of implementation subject invests in technology and provides
governance structure and interest balance. The research workforce and funds to promote the implementation
on the governance structure focuses on the interaction and transformation of the regeneration project. The
and cooperation between the market and the government, management service relationship mainly exists between
residents, and other subjects in various urban regeneration the government and the society. The government serves to
projects, which is the basis for constructing a market protect the interests of the public on the basis of guiding
mechanism. The research on the balance of interests and managing social subjects through institutional norms.
focuses on the allocation of cost input and value-added
benefits among different subjects in urban regeneration The research on the balance of interests takes urban
projects, which is the core of the sustainable advancement regeneration projects as the core and analyzes the “cost-
of the market mechanism (Figure 1). benefit” distribution of different subjects in the whole
process of planning, construction, and operation of
By identifying the participants of urban regeneration regeneration projects. Among them, the input forms of
projects, the research on governance structure analyzes the different subjects include investment in capital and space
different cooperation and interaction relationships among property rights, as well as technical and human input in
different subjects, such as market transactions, principal construction, operation, and maintenance. The benefits
agents, and management services. Specifically, the of different participants include the acquisition of space
market transaction relationship refers to the transaction property rights, use rights, rents, asset sales, and other
relationship between the buyer and the seller. Urban financial income.
regeneration mainly exists between market entities and
property owners. Specifically, it refers to various situations In addition, the characteristics of benefit allocation
where the original property owner transfers the space in different governance structures of urban regeneration
property rights to the implementing entity, the property projects are different. Among them, the trading

Volume 6 Issue 1 (2024) 5 https://doi.org/10.36922/jcau.0885