Tiananmen Square attracted only park-goers, weekend fishermen, or ice skaters, depending on the season. Then, ex-concert cellist Bai Feng opened his No Name bar (that's how it came to be called; it had no sign, but filled up via word-of-mouth), and the scene was set for a new generation of stylish establishments.

 Over the past year, the Bohemian area has gone upscale, Yuppified, and emerged as the capital’s coolest neighborhood, with scores of bars, restaurants, and boutiques catering to the city’s smart set. Add to that the opening last fall of a cobbled strip of chic venues called Lotus Lane, and Houhai looks ready to soar.

  Of course, trendy districts come and go; that’s the pattern of gentrification around the globe. But it applies here only on the surface. Houhai, you see, has been hip for centuries.