The transformation of urban villages is not only a livelihood project, but also a popular project. Since the beginning of this year, the renovation of urban villages has received much attention. On April 28th, the Political Bureau of the Central Committee of the Communist Party of China held a meeting and pointed out that "actively and steadily promoting the transformation of urban villages in mega cities"; In July, the General Office of the State Council issued the "Guiding Opinions on Actively and Steadily Promoting the Transformation of Urban Villages in Super Large Cities". Not long ago, the Ministry of Housing and Urban Rural Development further proposed specific policy implementation measures for the transformation of urban villages. The transformation of urban villages is related to the vital interests of the people. Actively and steadily carrying out this good deed is of great significance for improving people's livelihoods, expanding domestic demand, and promoting high-quality urban development. Urban villages, formed with the rapid development of industrialization and urbanization, are known as "villages in the city". In some mega cities, urban villages exhibit characteristics such as large numbers, large areas, and a large population. Taking Guangzhou, Guangdong as an example, the urban village area accounts for about 1/10 of the city's area, and the permanent population accounts for over 30% of the city's permanent population. In the process of development, many urban villages have prominent problems such as high hidden dangers in housing safety and fire safety, outdated supporting facilities, and dirty and disorderly environment. In addition, some urban villages have many illegal buildings, densely populated areas, and complex property rights relationships. At present, promoting the transformation of urban villages is a complex and arduous systematic project that requires adapting to local conditions and solving a series of difficult problems with new ideas and methods. The situation of urban villages is complex and diverse, and the transformation should adhere to the principle of planning first and then moving forward. Different methods such as demolition and construction, renovation and upgrading, and the combination of demolition and consolidation should be adopted to achieve maturity, promote one by one, and implement one by one. For example, those with balanced funds, strong willingness to renovate, and clear property rights are suitable for implementing demolition and new construction. For those who do not have the necessary conditions, we will adhere to the principle of maintaining the safety bottom line and carry out regular rectification and improvement. Some urban villages have a long history and preserve many cultural relics and historic buildings. Therefore, greater efforts should be made to revitalize historical spaces and enhance the urban landscape, in order to avoid large-scale demolition and the demolition of real and fake buildings, and to retain people's nostalgia. The renovation of urban villages requires a large amount of funds, where does the money come from? Funds can be raised by the government or social funds can be introduced. However, the renovation of urban villages usually takes a long period, and due to various factors such as adjustments in the current real estate market, the difficulty of raising social funds may increase compared to before. Various regions should actively seek diverse financing channels based on the actual development of cities, better tap into land value, and refine relevant policy support. In recent years, cities such as Shanghai and Xi'an in Shaanxi have established urban renewal funds, among which Shanghai has established a unified old renovation function platform throughout the city. Relevant units have also collaborated with multiple enterprises and financial institutions to launch urban renewal funds. By coordinating the resources of the city and using market-oriented financing methods to solve the problem of raising and balancing funds for the renovation of old villages, this provides a valuable solution for the renovation of urban villages. Cities are an organic organism, and urban villages provide low-cost living space for migrant populations, as well as entrepreneurial space for many small and micro enterprises and individual businesses. The transformation of urban villages cannot be "one size fits all", and serious research and analysis must be conducted to solve the problem of how to resettle good people and industries. One major characteristic of urban villages is that their business format is not pre planned, but rather follows the trend of the city