The transformation of brownfield and its holding firm in transitional economy: a case study in Beijing, China

China's industrial structural variation has led to many former industrial sites turned or turning into alternative use. This paper examines one of the large brownfield sites located in Beijing and its asset holding state-owned-enterprise (SOE) for their transformation. It explores an experiment of social cost minimising mechanism for the brownfield site redevelopment case. The historic and spatial patterns not only reveal the transformation of industrial site into brownfield for redevelopment, but also the transformation of its asset holding organisation from an industrial to development firm. Results show the underlying dynamics and transaction costs behind the transformation of brownfield and its asset holding organisation. Given costly institution innovation, firm structure change, and socio-political interplays, this paper proposes that SOE in China acts as bearer of social warranty to balance or internalise asset transformation (brownfield) risk or social cost inside the country's politico-economic transition. This idea directly relates to theory building and urban policy making. Further lines of research are proposed including attempt to investigate effectiveness of brownfield redevelopment stake-holder risk bearing behaviour by comparative studies between transitional and market economies.