To get a license, which needs to be renewed every three months, applicants are screened by a panel of judges to see what they have got to offer. For example, Xing sang and played guitar at his audition, while others made handicrafts.
Successful candidates are given training on the dos and don'ts, such as appropriate attire and the importance of not disturbing people, and they are warned not to set a price for people who want to leave money.
"People usually pay 5 to 20 yuan to buy our balloons," said Wang Luping, who along with his elder brother performs as a clown. The pair can sculpt balloons to create over 300 designs, from animals to popular characters like Baymax and Santa Claus.
"Once a man paid 100 yuan for one simple balloon," he said. "I was very moved that I made him a more-complex one instead."
Money is not the only motivation for street performers, though. "I just love kids, so seeing them happy makes me happy," said Wang's brother, Wang Shiping, who added that the duo's street performances have led to paying gigs.
"There are more parents now who want to hire clowns to make balloon animals at children's birthday parties. Some have even sent us as birthday gifts to their friends' children," he said.
The street licenses have brought performers not only a stable place to show off their talents and make a living, but also social recognition.
"My family used to oppose me performing in the street because they thought it was humiliating. Now, after the official recognition, they don't mind as much as before," said Yin Kai, a 38-year-old singer from Xuzhou, Jiangsu province.
He moved to Shanghai for a company job in 2000 but quit three years later to form a band with some friends. "At times, we need to slow down and think about life," he said. "I was confused, not knowing what I truly wanted."