This article defines the key parameters of ‘state entrepreneurialism’ as a governance form that combines planning centrality and market instruments, and interprets how these two seemingly contradictory tendencies are made coherent in the political economic structures of post-reform China. Through examining urban regeneration programmes (in particular ‘three olds regeneration’, sanjiu gaizao), the development of suburban new towns and the reconstruction of the countryside, the article details institutional configurations that make the Chinese case different from a neoliberal growth machine. The contradiction of these tendencies gives room to urban residents and migrants to develop their agencies and their own spaces, and creates informalities in Chinese urban transformation.