Since 1978, market transition in China has significantly influenced the roles of the state, the market and the residents in urban restructuring. Since 2008, the central government has initiated Shantytown Redevelopment Projects (SRPs) to improve the living conditions of lowincome residents. Between 2008 and 2012, about 12.6 million households were involved in SRPs, and forced to move as their dwellings were demolished. This paper investigates how SRPs are implemented by revealing how different stakeholders interact in SRPs in the city of Shenyang, China.