This 300-meter-long hutong is said to be one of the oldest commercial streets in Beijing. It connects Di'anmen Street with Houhai Lake, an area currently known for its bars and nightlife.

During the Qing Dynasty (1644 to 1911 AD), the alley was originally named Gulou Xiejie (Skewed Drum Tower Street). During the late Qing, it had already garnered great reputation for its classy pipe shops, thus earning its current name. Later on, the antique and art trade boomed there and added more color to the scene. Nowadays, the hutong attracts a large number of tourists every year through its stylish shops, bars, cafes and nice restaurants.

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