This report is based on housing and urban upgrading in Yantai, China, which discusses the major housing problems and challenges faced by China. It describes the achievements made by China to provide housing for its citizens, which are unprecedented by any international standards. The report focuses on the instruments and methods used in housing and urban upgrading projects in China, with a case study of Yantai city. It further illustrates the approaches to finance such housing and upgrading activities in Yantai.