YINCHUAN, Aug. 29 (Xinhua) -- In a small community park in Yinchuan, capital of northwest China's Ningxia Hui Autonomous Region, local residents can be seen taking evening strolls or sitting together chitchatting after a long, hot summer day.

Looking at the serene beauty of this park, it's hard to believe that this same place was once a cluttered garage.

"If you had visited this place a few years ago, you would not recognize it now," said Cui Xiushu, a 65-year-old resident of the Ningjingyuan residential community in Yinchuan's Xingqing District. She was in the park with her grandson, enjoying the lush aura, beautiful flowers and green walkway.

Xingqing is the most populous district in Yinchuan and is often referred to as the old town due to its history dating back to 678 A.D.

The old town, which had been struggling due to outdated public facilities and disorderly management, is now thriving with new charm thanks to renovation initiatives and the influx of e-commerce industries.

Ningjingyuan is one of the hundreds of old residential compounds in Yinchuan that have undergone renovations with government funds, as the past vibrant existence of the old town is precious to the memories of the older generation.

Before the facelift, the area was plagued by litter, a lack of public space, and outdated and frail infrastructure. Due to the real estate boom over the past two decades, most young people have opted to buy new apartments in modern residential compounds outside Ningjingyuan, leaving the old town in a sorry state.

Some nationally renowned, century-old shops and restaurants in the old town were also losing customers, which had been worsened by the COVID-19 pandemic since 2020.

Yinchuan was famed as one of the most dynamic commercial cities in northwest China for centuries, but its ancient town was at risk of becoming desolate due to deteriorating infrastructures, a shrinking population, and a waning business.

Two years ago, a major transformation project kicked off in the city, which included external wall insulation and roof waterproofing of apartments, road leveling and reconstruction, drainage restoration, and delimiting of parking spaces.

A total of 360 residential compounds have been renovated so far, benefiting some 50,000 households, local statistics showed.

A cultural center, an elderly recreation facility and a public space for holding community activities have also been built in Ningjingyuan, said Mu Xiuqin, a local community official. "The community was a dilapidated neighborhood, but now it has been transformed into a garden-like compound."

As the old town has become more livable and business-friendly, the local government has made efforts to attract enterprises, primarily digital commercial operators, service corporations, and catering businesses.

A digital economy industrial park was established in Xingqing in 2020. E-commerce companies have flocked to the industrial park, selling Ningxia specialties such as beef, mutton, goji berry and wines, among others, domestically as well as overseas.

More than 210 companies have set up their bases in the industrial park, including over 190 cross-border e-commerce enterprises. The total transaction volume of these companies has reached nearly 1.24 billion yuan (about 180 million U.S. dollars), of which 915 million yuan accounted for exports, according to the park's operator.

"We aim to further strengthen the district's modern service industry by building industrial clusters, including commercial services and digital economy," said Zhang Qingya, Party chief of Xingqing District.