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"Beijing earmarked a special fund of eight billion yuan ($1.16 billion) on function relocation projects last year," said an official from the Beijing Municipal Finance Bureau.
According to the city's development and reform commission, functions that have been removed from the capital include manufacturing, logistics, wholesale markets and some public service facilities.
These steps will affect the many people drawn to Beijing in these sectors. The capital has already seen 120 wholesale markets torn down since 2014, with some manufacturing industries also planning to move into neighboring Tianjin and Hebei.
An innovative financial fund was involved in the relocations.
For example, there are the investments in the Bali Bridge shanty houses transformation project and the ‘two stations, one street' project. In addition, social capital amounting to 40 billion yuan ($ 5.81 billion) was brought in to develop a subsidiary administrative center in Tongzhou district, which is about 40 minute's drive from the city center.
Leading enterprises, including Teamsun, Letv, ScienceSun and Beijing Gongmei have also received financial support.
The official added that the government steered capital towards where it is needed, such as the innovative industry.
