On July 21st, the Guiding Opinions on Actively and Steadily Promoting the Transformation of Urban Villages in Super Large Cities were reviewed and passed at the executive meeting of the State Council. The meeting pointed out that actively and steadily implementing the transformation of urban villages in mega cities is an important measure to improve people's livelihoods, expand domestic demand, and promote high-quality urban development. Fu Yifu, a senior researcher at Xingtu Financial Research Institute, told Securities Daily that promoting the transformation of urban villages will further stimulate the vitality of upstream and downstream related industries, drive effective investment and consumption, and have significant implications for stable growth and benefiting people's livelihoods. The conference on accelerating the transformation of urban villages in multiple regions pointed out the need to fully leverage the decisive role of the market in resource allocation, better leverage the role of the government, increase policy support for urban village transformation, actively innovate transformation models, encourage and support the participation of private capital, strive to develop various new business forms, and achieve sustainable operation. The Political Bureau meeting of the Central Committee of the Communist Party of China held on April 28th this year proposed to actively and steadily promote the transformation of urban villages and the construction of public infrastructure for both emergency and emergency use in mega cities. According to the "2021 Urban Construction Statistical Yearbook" released by the Ministry of Housing and Urban Rural Development in October 2022, as of the end of 2021, there are 8 mega cities in China, namely Shanghai, Beijing, Shenzhen, Chongqing, Guangzhou, Chengdu, Tianjin, and Wuhan; There are 11 mega cities in China, including Hangzhou, Dongguan, Xi'an, Zhengzhou, Nanjing, Jinan, Hefei, Shenyang, Qingdao, Changsha, and Harbin. Taking Shenzhen as an example, for the renovation of urban villages, comprehensive renovation and renovation will be implemented by the government after unified leasing, and included in its policy based housing security system. The Shenzhen Housing and Construction Bureau recently released the "Guidelines for Improving the Scale and Quality of Affordable Housing in Urban Villages in Shenzhen", which proposes that from 2023 to 2025, Shenzhen will build and raise 460000 affordable housing units (rooms) with a construction area of over 20 million square meters. Guangzhou plans to promote 127 urban village reconstruction projects (including 46 continuation projects, 12 new projects and 69 preliminary projects) in 2023, and it is expected to complete fixed assets investment of 98.3 billion yuan, accounting for 49% of the annual urban renewal fixed assets investment target. In an interview with Securities Daily, Weng Zichi, a senior investment advisor at Jufeng Investment Consulting, stated that the construction of related public service facilities is mainly resolved through financial subsidies, special bonds, and other means, which can help stabilize investment and expand domestic demand. In response to the proposal of "encouraging and supporting the participation of private capital" proposed at the National Regular Meeting, Weng Zichi believes that it is necessary to be led by local functional state-owned enterprises, innovate and transform models, and provide strong policy support to attract the participation of private capital. In the future, various types of private capital can be encouraged to enter more with operational income, and actively contribute to rental income, parking lots, street shops, restaurants and canteens. According to Guotai Jun'an Research Report, with limited incremental investment space, real estate renewal investment in first and second tier cities will dominate in the future. According to the proportion of the old residential quarters with more than 20 years of housing age in the housing stock in the first and second tier cities and the Unit cost of renewal investment, if all of them are based on the standard of old residential quarters reconstruction