When profit-driven renewal is difficult to implement, many historic districts are “frozen protected” in China. In the social context of “building cities for the people” in recent years, the public value-oriented renewal of urban historic areas plays an important role in the transformation of cities. This study investigates the strategies of historic district regeneration in China by integrating spatial form, urban governance, and public value. We propose a novel framework to analyze the regeneration of historic districts, using Taiyuan Bell Tower Street as a case study. The framework distinguishes between two dimensions: spatial and economic-social. In the spatial dimension, we focus on the transformation of spatial form to regenerate public value, emphasizing the attribute of "publicness" as central to urban regeneration efforts. This involves a tiered approach of excavating and upgrading historic districts at macro, meso, and micro levels. In the economic-social dimension, we explore urban governance to strengthen public value, involving government, market, and societal actors in a collaborative renewal process. The analysis highlights that a public value-oriented approach to heritage regeneration offers greater sustainability and could serve as a model for other cities seeking similar outcomes.