Over 20 billion yuan: Fiscal subsidies for urban renewal now include another 20 cities.

On June 4, the Department of Economic Construction of the Ministry of Finance and the Urban Construction Division of the Ministry of Housing and Urban-Rural Development released the "Public Notice of the Selection Results for Central Financial Support for Urban Renewal Actions in 2025." Twenty cities—including Beijing, Tianjin, Tangshan, Baotou, Dalian, Harbin, Suzhou, Wenzhou, Wuhu, Xiamen, Jinan, Zhengzhou, Yichang, Changsha, Guangzhou, Haikou, Yibin, Lanzhou, Xining, and Urumqi—were selected. In the coming years, the central government plans to provide subsidies exceeding... 20 billion yuan will be allocated to help the aforementioned cities address their shortcomings and weaknesses in urban infrastructure and explore the establishment of sustainable urban renewal mechanisms.

This year In April, the General Office of the Ministry of Finance and the General Office of the Ministry of Housing and Urban-Rural Development issued the “Notice on Launching the 2025 Central Financial Support for Implementing Urban Renewal Actions.” The central government will provide financial support to cities implementing urban renewal actions, based on regional criteria. Fixed-amount subsidy Among them:

Eastern region Total subsidy amount per city No more than 800 million yuan,

Central region Each city No more than 1 billion yuan,

Western region Each city No more than 1.2 billion yuan,

Municipalities directly under the central government Each city No more than 1.2 billion yuan.

Funds will be disbursed annually based on the progress of the work.

Against the macro backdrop of expanding domestic demand, urban renewal has been given a higher priority. It is no longer merely a livelihood project aimed at improving the urban environment; rather, it has become a crucial lever for boosting investment and unleashing consumer potential. Through projects such as the renovation of old residential communities and the upgrading of commercial districts, we can not only enhance residents' quality of life but also stimulate the development of upstream and downstream industries—including construction, home appliances, and cultural tourism. The cities selected this time all possess solid foundations for renewal, mature benchmark projects, and positive market feedback. With the dual support of financial resources and favorable policies, these cities are poised to create... An updated model characterized by “security resilience, comprehensive functionality, and robust domestic demand” provides a replicable path of experience for similar cities nationwide.

Judging from the publicly announced evaluation results, policy support is showing a new trend of extending to higher-tier third- and fourth-tier cities. In contrast to last year, when the focus was primarily on first- and second-tier cities, this year has seen the addition of key third- and fourth-tier cities such as Wuhu and Yichang. This reflects a policy tilt toward higher-tier third- and fourth-tier cities, which will be further stimulated through central financial support to unlock their potential for urban renewal.

Under the guidance of regional differentiation, this year we are focusing more on the renewal of old urban districts. As for financial support, compared to last year, In 2025, central government financial funds will be explicitly directed toward... "Model Project Construction" and Mechanism Building Adopt a two-pronged approach. In addition to supporting specific renewal projects, for the first time, funds are permitted to be used for building complementary institutional frameworks—including mechanisms for project reserve generation (such as urban health checks and special planning), mechanisms for raising funds (including the design of fiscal and financial schemes), and mechanisms for securing land use (such as revitalizing existing land stocks)—thereby laying a solid institutional foundation for the sustained implementation of urban renewal.

The key demonstration projects for urban renewal fall into four categories:

One is Renovation and upgrading of urban underground utility networks—including water supply and drainage, gas, and heating—as well as the construction of economically intensive integrated utility tunnels.

Second is Urban wastewater treatment Construction of demonstration zones featuring “integrated plant-and-network systems” and full coverage of urban domestic wastewater collection networks;

Third is Upgrading and renovating municipal infrastructure such as household waste sorting and treatment, construction waste management, integrated utility poles and boxes, aging and hazardous bridges, and mechanical parking facilities;

Fourth is The renovation and upgrading of existing areas—such as historic and cultural districts, old urban neighborhoods, and green spaces open for shared use—will emphasize the integrated development of culture, tourism, dining, and leisure and entertainment, while also strengthening the construction of consumption-oriented infrastructure.

The construction of urban renewal mechanisms includes three categories:

One is Project reserve and generation mechanism.

Second is Funding arrangements and mobilization mechanisms.

Third is Land-use guarantee and approval mechanism.

Central funds can be used for related expenses incurred during the establishment of the three mechanisms mentioned above.

In terms of the support field, it starts from... The focus is shifting from “basic livelihoods” to “boosting consumption.” Building on ongoing efforts to step up the renovation of underground pipe networks and the integrated construction of sewage systems—known as “plant-network integration”—this initiative for the first time includes consumer-oriented infrastructure development as a key area of support. By improving supporting facilities such as commercial amenities and cultural-and-tourism venues, we aim to enhance the urban renewal process’s ability to unlock consumption potential.

Guo Fangming, Director of the Department of Economic Construction at the Ministry of Finance, previously stated at a press conference that the central government’s fiscal policy is focused on exploring new models, prioritizing urban renewal tasks, and fostering synergy between fiscal and financial policies. “Three Focus Areas” to Support Urban Renewal. Actively explore a sustainable urban renewal investment and financing model guided by the government, operated by the market, and involving participation from all sectors of society. Encourage private enterprises to participate in concession-based operations for infrastructure and public utilities, and attract active involvement from various stakeholders—including social capital, communities, and residents—in urban renewal efforts. The Ministry of Finance will also conduct performance evaluations on the progress of work and the management of funds in relevant cities, strengthen follow-up and effectiveness tracking, and promote urban renewal with high quality.