For decades, funeral reform has been a key concern for cultural governance in China as the state has attempted to manage “feudal” and “superstitious” practices and economize resources such as land devoted to cemeteries. We analyse the status of funeral reforms in Shenzhen, combining general observations with a case study of an urban village. We show how the business of funeral service providers mediates between cultural governance and grassroots-level needs and demands, resulting in distinct forms of ritual hybridization. In the case of native villagers, we observe the bifurcation of rituals at the central municipal parlour and at the home of the deceased. For understanding the adaptability of death rituals under the regime of cultural governance, it is essential to distinguish between funeral rites and their modular structure on the one hand, and rites for the disposal of the body on the other.