Abstract: As China's urbanization slows and the land-finance model becomes increasingly unsustainable, urban regeneration has become a strategic lever for transforming the mode of urban spatial production. From the perspective of supply-side structural reform, this paper shows that the traditional land-finance model, driven by the pressure of debt, has produced a dual surplus of space and capital. It argues that urban regeneration can construct a new equity-driven relation of spatial production and thereby restructure the full chain of value production, circulation, and distribution. The study finds that urban regeneration reconstructs the supply of production factors around the participation of rights holders, innovates value-circulation mechanisms through the tertiary land market, and improves resource- allocation efficiency through spatiotemporal coordination. It thus forms a spatial governance pathway that complements land finance rather than merely replacing it. This transition can help resolve urban spatial debt risks, promote multi-actor participation and long-term benefit sharing, and provide a practical route toward sustainable urban development. The paper offers a new interpretive framework for understanding the deeper significance of urban regeneration in China's urban transformation.