Abstract: High-quality urban renewal initiatives are indispensable for achieving sustainable urban development and ensuring social equity. However, the conventional approach of relying solely on government agencies to provide urban public goods is proving increasingly unsustainable. Shenzhen, a resource-scarce and densely populated city, has pioneered the model of "government support and market participation in pro‐ vision" in the early practices of regenerating existing urban areas. Drawing on public goods theories, this paper introduces an analytical framework that encompasses policies, players, and efficiency in public goods provision. Based on a review of policies aimed at safeguarding public interests in urban development and renewal in Shenzhen from 2004 to 2023, and evaluating their efficacy using spatial and temporal data of approved renewal unit projects from 2011 to 2022, the research reveals several key findings. Firstly, institutional design configurations have shifted towards multidisciplinary and multidimensional integration. Secondly, the incentive mechanism structure shapes the provision of public goods. Thirdly, stakeholder consultation plat‐ forms help optimize decision-making processes. Reflecting on the mismatch between the supply and demand of public goods, the paper offers new ideas for urban renewal and operation in the new era.