Abstract: This essay examines the relationship between the Banners and Minren(non － Banner people)，focusing on the study of inner － city shops of Beijing in the Qing dynasty. In the early Qing，dualistic residential system were implemented，Minren were forced to move out of the inner － city，but the Qing government could not stop Minren from re － entering into the city. The development of the inner － city shows the government had accepted the settlement of Minren in the inner city since the Jiaqing and Daoguang period. The inventory of residents ，the shop guarantor system and the governmental household survey could be taken as three signals of the breaking down of the separation system.The commercial covenants also reveal that changing ethnic background of shopkeepers and merchant groups in the inner－ city. In conclusion，the essay indicates that the main character of the merchant groups in Beijing city in the Qing dynasty was that they consist of both Banners People and Minren. Commercial connection between Banners Merchants and its Minren counterparts helped to put an end to the dualistic residential system.