Investment in Fixed Assets
Total Investment in Fixed Assets in
the Whole Country refers to
the volume of activities in construction and purchases of fixed assets and
related fees, expressed in monetary terms. It is a comprehensive indicator
which shows the size, structure and growth of the investment in fixed assets,
providing basis for observing the progress of construction projects and
evaluating results of investment. Total investment in fixed assets in the whole
country includes, by type of ownership, the investment by the state-owned
units, collective units, individuals, joint ownership units, share-holding
units, as well as investment by businessmen from foreign countries and from
Investment in Capital Construction Capital construction refers to the new
construction projects or extension projects and the related activities of the
enterprises, institutions or administrative units mainly for the purpose of
expanding production capacity (or improving project efficiency), covering only
projects each with a total investment of 500,000 RMB yuan and over. It
includes: (1) projects listed in the capital construction plan of the current
year of the central government and the local governments at various levels as
well as the projects, though not listed in the capital construction plan of the
current year, but continued to be constructed in this year, using the
investment listed in the plan of capital construction of previous years and
carried forward to this year (also using the equipment and materials kept in
stock of the capital construction); (2) new construction projects arranged both
in the plan of capital construction and the plan of innovation; extension
projects with the newly increased production capacity (or project efficiency)
up to the standard of a large and medium-sized project; and the projects of
moving the whole factory to a new site so as to improve the distribution of
productive forces; (3) new construction projects, extension projects or
restoration projects with the total investment of 500,000 RMB yuan and over by
the state-owned units, though listed neither in the plan of capital
construction nor in the plan of innovation; the projects in the state-owned
units of moving the whole factory to a new site so as to improve the
distribution of productive forces; and the projects of building additional
business houses by the administrative units and institutions and building
welfare facilities by the administrative units.
Investment in Innovation Innovation
refers in general to the technological innovation of the original facilities
(including renewal of fixed assets) by the enterprises and institutions as well
as the corresponding supplementary projects for production or welfare
facilities and the related activities, covering only projects each with a total
investment of 500,000 RMB yuan and over. It includes: (1) projects listed in
the innovation plan of the current year of the central government and the local
governments at various levels as well as the projects, though not listed in the
innovation plan of the current year, but continued to be constructed in this
year, using the investment listed in the plan of innovation of previous years
and carried forward to this year; (2) projects of technological innovation or
renewal of the original facilities, arranged both in the plan of innovation and
in the plan of capital construction; extension projects (main workshops or a
branch of the factory) with the newly increased production capacity (or project
efficiency) not up to the standard of a large and medium-sized project; and the
projects of moving the whole factory to a new site so as to meet the
requirements of urban environmental protection or safe production; (3) projects
of reconstruction or technological innovation with the total investment of
500,000 RMB yuan and over by the state-owned units, though listed neither in
the plan of capital construction nor in the plan of innovation; the projects in
the state-owned units of moving the whole factory to a new site so as to meet
the requirements of urban environmental protection or safe production.
Investment in Real Estate Development It includes the investment by the real
estate development companies, commercial buildings construction companies and
other real estate development units of various types of ownership in the
construction of house buildings, such as residential buildings, factory
buildings, warehouses, hotels, guesthouses, holiday villages, office buildings,
and the complementary service facilities and land development projects, such as
roads, water supply, water drainage, power supply, heating, telecommunications,
land leveling and other projects of infrastructure. It excludes the activities
in simple land transactions.
Other Investment in Fixed Assets refers to the construction and purchases
of fixed assets with an investment of over 500,000 yuan which are not listed in
the investment in capital construction, investment in innovation and investment
in real estate development, as well as urban private housing projects and
investment in fixed assets by enterprises, institutions and individuals in
rural areas. It includes:
1) The following projects of the state-owned units with the
total planned (or actually needed) investment of over 500,000 yuan, which are
not included in the plan of capital construction and the plan of innovation:
(1) projects of oil fields maintenance and exploitation with the oil fields
maintenance funds and petroleum development funds; (2) opening and extending
projects with the maintenance funds in coal, ore and other mining enterprises
and logging enterprises; (3) project of reconstruction of the original highways
and bridges with the highway maintenance funds in the department of
communication; (4) projects of construction of warehouses with the funds of
simple construction in the commercial department.
2) The
investment in fixed assets by urban collective units: refer to projects of
construction and purchases of fixed assets with the planned total investment of
500,000 yuan and over by all collective units in areas under the jurisdiction
of cities and county towns (excluding investment by collective units under
township enterprise administration offices).
3) The
projects of construction and purchases of fixed assets by the enterprises,
institutions (including urban private enterprises or institutions) or
individuals other than those mentioned above with total investment of 500,000
yuan and over, which are not included in the plan of capital construction and
the plan of innovation. For individual investment, only the investment in
non-housing projects is to be included.
4) The
private investment in housing construction in the urban areas and in industrial
and mining areas: including all private housing construction under the
jurisdiction of cities, county towns and industrial and mining areas, no matter
whether the owner of the house is registered as the permanent resident in the
locality or not.
5) The
investment in rural areas: including investment in fixed assets by enterprises,
institutions and individuals in the rural areas.
Sources of Funds for Investment in
Fixed Assets include fund from state budget, domestic
loans, foreign investment, self-raised funds, and others depending on the
source of investment.
(1) Fund
from state budget consists of budgetary appropriation and loans from state
budget. More specifically, it includes, from the budget of the central
government, capital construction fund (operation fund and non-operational
fund), special expenses (e.g. expenses on substituting petroleum with coal),
loans from repayment, discount fund, expenses on innovation and trial
production of new products, expenses on urban construction, expenses on
temporary construction by trade departments, development fund for less developed
areas, as well as local budgetary fund transferred from the central budget.
(2)
Domestic loans refer to loans of various forms borrowed by investing units from
banks and non-bank financial institutions during the reference period for the
purpose of investment in fixed assets, including loans issued by banks from
their self-owned funds and deposit, loans appropriated by higher responsible
authorities, special loans by government (including loan for substituting
petroleum with coal, special loan for reform-through-labour coal mines), loans
arranged by local government from special funds, domestic reserve loan, and
working loan, etc..
(3)
Foreign Investment refers to foreign funds received during the reference period
for the construction and purchase of investment in fixed assets (covering
equipment, materials and technology), including foreign borrowings (loans from
foreign governments and international financial institutions, export credit,
commercial loans from foreign banks, issue of bonds and stocks overseas),
foreign direct investment and other foreign investment. Excluded in this
category are capitals in foreign exchanges owned by
(4)
Self-raised funds refer to extra-budgetary funds for investment in fixed assets
received by investing units from central government ministries, local
governments, enterprises and institutions, including their self-raised funds.
(5)
Others refer to funds for investment in fixed assets received from the sources
other than those listed above, including capitals raised through issuing bonds
by enterprises or financial institutions, funds raised from individuals and
through donations, and funds transferred from other units.
Investment in Fixed Assets by Sector The classification of construction
projects by sector is determined by the major products or the purpose of the
projects when they are put into production or use, and by the nature of their
social economic activities. The investment in capital construction is
classified into different sectors of the national economy by the nature of
construction projects, while investment in innovation and other investment are
classified according to the sector to which the whole enterprise or institution
belongs. In general, one project or one enterprise or institution can only be
classified into one sector. In order to reflect more accurately the relation
among various sectors, the branch factories of an integrated complex are
classified into different sectors according to the economic activities of the
branch factories.
Investment in Fixed Assets by Type of
Construction The construction projects in general can
be classified, by the type of construction, into new construction, expansion,
reconstruction, moving and restoration. However, investment by type of
construction is not applied to investment by real-estate development units,
investment in rural areas and investment in housing by urban individuals. In
capital construction, the type of construction is determined by the nature of
the project. In investment in innovation, in other investment by state-owned
units and investment by collective-owned units, the type of construction is
determined by the condition of the whole enterprise or institutions.
(1) New
construction in general refers to newly constructed enterprises, institutions,
administrative agencies or independent projects from scratch. Construction in
the existing enterprises, institutions or agencies is not considered as new
construction. In case the assets of the existing unit is quite small, and the
value of newly added fixed assets exceeds the original value of assets by three
times, the expansion will be considered as new construction.
(2)
Expansion refers to construction of new major production workshop, branch
factory or independent production line within a factory or in other locations,
for the purpose of increasing the production capacity (or improving efficiency)
of the original products. Newly constructed houses for the operation of
institutions and administrative organizations (such as the newly constructed
buildings for teaching in schools, buildings for clinics or wards in hospitals,
etc.) are also classified as expansion.
Also
included in the expansion are investments by existing enterprises or
institutions in building major production line(s) or branch factory(ies) along with some work on innovation, for the purpose of
expending the production capacity of original products or producing new
products.
(3)
Reconstruction refers to innovation or technical transformation of the existing
facilities (including auxiliary production equipment and welfare facilities),
without building major new workshops or branch factories. Also considered as reconstruction is the
construction of new workshops by the existing enterprises or institutions for
improving the existing production capacity (improving or changing the variety
of products to meet the market demand), rather than increasing the designed
capacity of the main products.
Investment in Fixed Assets by
Structure By their contents, investment activities
are classified into 3 categories, i.e. construction and installation, purchase
of equipment and instrument, and other expenses.
(1)
Construction and installation (work volume of construction and installation)
refers to the construction of various houses and buildings and installation of
various kinds of equipment and instruments. They include construction of
various houses; equipment foundations, industrial kilns and stoves, and metal
structure work; preparation works for project construction, and clearing up
works post project construction; pavement of railways and roads, drilling of
mines and putting up of oil pipes; construction of projects of water
conservancy; construction of underground air-raid shelters and construction of
other special projects; value of equipment for heating, sanitation,
ventilation, lighting, gas, painting, etc. that are covered by the budget of
housing projects; laying out of various pipelines (for steam, compressed air,
petroleum, tap water and sewage) and lines for electric power and for
communications; installation of various machinery equipment, testing operation for
pre-testing the quality of installation projects, and land and other
development work conducted by real estate developers for commercial housing.
The value of equipment installed is not included in the value of installation
projects.
(2)
Purchase of equipment and instruments refers to the total value of equipment,
tools, and instruments purchased or self-produced which come up to standards
for fixed assets by the construction units or investing enterprises or
institutions. Equipment, tools and instruments purchased or self-produced for
new workshops by newly established or expanded units are categorized as
"purchase of equipment and instruments" no matter whether they come
up to the standards for fixed assets.
(3) Other
expenses refer to expenses occurring during the construction or purchase of
fixed assets other than those mentioned above.
Capital Construction Projects by Size The classification of size of capital
construction projects should be determined according to the total scale or
total investment set in the approved construction plan by higher responsible
authorities or in the tentative design, otherwise according to the total scale
or total investment set in the current capital construction plan of the state,
provinces, autonomous regions, and municipalities directly under central
government. Industrial projects which produce unitary products are classified
according to its design capacity of products; projects which produce
multi-products are classified by the design capacity of the major product or by
the total planned investment. Standards for the Classification of Construction
Projects into large, medium-sized and small ones issued by the government are
the base for size division of construction projects, which was revised five
times in 1958, 1962, 1972, 1977, and 1979 respectively and therefore, data on
projects by size are not entirely comparable from year to year.
Projects under Construction refer to projects with construction and
installation activities undertaken in the reference period. All projects that
have construction activities undertaken during the reference period are
reported as projects under construction irrespective of the length of
construction work. The number of projects under construction can reflect the
actual size of investment in fixed assets during a given period, and when
compared with the number of projects completed and put into use during the same
period, it demonstrates the results of investment in fixed assets. Depending on
the nature of construction activities, projects under construction can also be
classified into projects under construction in current year, winding-up
projects in current year and stopped or suspended projects in previous years
(with preservation work in current year).
Projects Completed and Put into Use Industrial projects refer to the major
projects and accessory facilities completed which result in forming production
capacity and have been checked and accepted while the living and welfare
facilities have been completed and can ensure normal production and formally
put into production. Non-industrial projects refer to the major projects and
accessory facilities completed which possess the designed capacity and have
been checked, accepted and formally put into production.
Newly Increased Production Capacity (or Project
Efficiency) refers to the increase of designed capacity (or project
efficiency) through investment in fixed assets, which reflects the
accomplishment of investment in fixed assets in kind and serves as important
basis for evaluating the economic efficiency of investment.
The newly
increased production capacity (project efficiency) are usually expressed in one
of the following forms:
(1)
output of products, i.e. the output that the project can produce during a given
period (usually a year). For instance, the capacity in coal mining is expressed
in 10,000 tons/year, the capacity in producing chemical pesticides expressed in
ton/year, the capacity in producing tractors in tractor/year, etc. For some
chemical products where the effective contents differ significantly, the
production capacity is expressed as the designed effective content equivalent,
such as in the case of sulphuric acid, soda ash,
caustic soda, etc;
(2) raw
materials processing capacity, i.e. the volume of raw materials that could be
processed by the project per day (or per hour), such as tons of materials
processed per day by a sugar refining project or edible vegetable oil project,
or tons of urban sewage processed per day;
(3)
number or capacity of major equipment increased, such as number of cotton or
silk looms increased, wool spindles increased, or capacity (in kilowatts) of
power generators increased;
(4) saved
raw materials, fuels or power, which are mainly used for the efficiency of
innovation and transformation projects; and
(5)
physical measures (volume, capacity, area, and length) of construction, which
is typical for non-industrial projects, for instance, the length of new
railways or highways, the capacity of reservoirs, the floor space of housing
projects, capacity for new students in schools or beds in hospitals, areas
under new irrigation project, etc.
Features
of projects sometimes call for combined use of two or more measurement to
reflect the increased production capacity (or project efficiency), for instance,
the new capacity for the production of internal combustion engines are
expressed in sets per year and kilowatts per year simultaneously.
To
standardize the nomenclature and unit of measurement for new production
capacity (or project efficiency), the National Bureau of Statistics has
developed Nomenclature for New Production Capacity (Project Efficiency)
and Nomenclature for Saving Raw Materials, Fuels and Power. All
reporting units with investment activities are required to follow these two
nomenclatures in reporting statistics on new production capacity (project
efficiency).
Floor Space of Buildings under
Construction and Completed refers to total
floor space of the horizontal section of outer walls above the plinth of the
building, including the effective area and the area occupied by the structure.
This indicator is one of the important indicators in physical terms to reflect
the scale and accomplishment of the construction industry, and important basis
for monitoring the progress, calculating the cost, analyzing the efficiency and
studying the supply of building materials in relation with the construction
projects.
Floor Space of Residential Buildings refers to the floor space of the
residential buildings among the total space of buildings under construction or
completed.
Floor Space under Construction refers to total floor space of all
buildings under construction during the reference period, including floor space
of newly started buildings during the reference period, floor space of
construction extended from the previous period to the current period, and floor
space of construction suspended during the previous period and resumed in the
current period. Floor space of construction completed in the current period,
and floor space of construction started and then suspended in the current
period are also included in the floor space under construction of the current
year.
Floor Space of Buildings Completed refers to the floor space of all
buildings completed in the reference period, which have been appraised and
accepted (or come up to the designed standards) and have been transferred to
the owners for use.
Completion Rate of Floor Space of
Buildings refers to the ratio of the floor space
of buildings completed in certain period of time to the floor space of
buildings under construction in the same period. This indicator reflects the
investment result from the perspective of the speed of construction.
Newly Increased Fixed Assets refer to the newly increased value of
fixed assets, constructed or purchased, that have been transferred to the
investors. This is an indicator that demonstrates the results of investment in
fixed assets in monetary terms, and an important indicator to reflect the speed
of construction and to calculate the efficiency of investment.
Rate of Construction Projects
Completed and Put into Use refers to the
ratio of the number of construction projects completed and put into use in
certain period of time to the number of projects under construction in the same
period. This reflects the investment efficiency from the perspective of the
speed of projects construction.
Rate
of Projects of Fixed Assets Completed and Put into Operation
refers to the ratio of the newly increased fixed assets to the total
investment made in the same period. This is a comprehensive indicator
reflecting the speed of the employment of fixed assets and the investment
efficiency at the macro-level. As the newly increase fixed assets is the result
of a long period while the investment is completed in the current year, this
indicator is expected to be used to reflect the employment of fixed assets over
a long period of time.
Number of Flats in Completed Residential
Buildings refers to total number of flats
completed during the reference period, appraised and accepted as meeting the
standards for living, and transferred for use. A flat includes separate kitchen
and bathroom, several bedrooms and corridor, suitable for one household. This
indicator reflects the degree of industrialization of the residential building
construction, the process of urbanization and the improvement of the living
standard of people.
Villas, High-Grade Apartments
refers to commercial houses whose construction costs and marketing
prices are significantly higher than ordinary housing. Villas are independent
structures generally located in the suburbs; high-grade apartments are
multi-story buildings located in elegant urban neighborhoods. Criteria for
villas and high-grade apartments include: 1) projects for the construction of
villas or high-grade apartments have to be approved by competent departments in
charge of real estate development and investment plans, and 2) prices for
projects on villas or high-grade apartments are higher by over 100% compared
with the average prices of ordinary commercial housing projects in similar
location. This indicator helps to analyze the investment structure of the real
estate industry and the demand and supply of housing for high-income
households.
Economically
Affordable Housing refers to
housing constructed according to the state plan for economically affordable
housing. Houses of this category featured in low cost in construction and low
prices, and therefore are affordable to mid-income or low income households.
Economically affordable housing projects are developed by real estate companies
under the state investment plan, with the land provided through government
allocation or tendering procedures. Developers are exempted from land
utilization fees and enjoy another 50% exemption of all other legitimate fees,
while their profits are limited to less than 3%, and the completed houses are
sold under the government-guided prices. This indicator helps to analyze the
investment structure of the real estate industry and the demand and supply of
housing for mid or low income households.