A worker dismantles a wholesale market near Beijing Zoo, Jan 11, 2014. [Photo/cnr.cn]

BEIJING - A wholesale market in downtown Beijing has closed and is expected to move to neighboring Hebei Province in a move to reduce traffic congestion and population density in the capital.

Tianhaocheng Market, which closed on Monday, became the first market in the famous clothing wholesale zone near Beijing Zoo to shut its doors. Other markets, such as Julong and Zhonghe in the zone, are also expected to move.

Stall tenants are encouraged to move their businesses to Langfang City, Hebei Province, but will not be organized to do so, said an official in charge of the closure.

The emptied building will be renovated into an office building, according to the official.

Built in the mid-1980s, Beijing Zoo wholesale market zone is known for clothing and small commodity wholesalers and retailers.

A study by the Beijing Academy of Social Sciences showed 11.6 percent of Beijing's workers are employed in wholesale and retail-related businesses.

Chen Gang, vice mayor of Beijing, said last year that the city has decided to relocate small commodity markets in the downtown area, as they are inconsistent with the functions of the country's capital.

According to an agreement signed by Beijing's Xicheng District and Langfang City last April, the two sides will build a logistics zone and wholesale market together in Langfang, after Chinese President Xi Jinping called for integrated development of the region around Beijing last February.