Explanatory Notes on Main Statistical Indicators
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
Urban Investment in Fixed Assets refer to construction projects involving
a total planned (or required) investment of 500,000 yuan
and over by urban enterprises and
institutions of various types of ownership, by administrative units and
by individuals, investment in real
estate development, and housing investment by individuals in urban areas and in
industrial and mining areas. In other words, all investments that take place in
county towns and urban areas, investment in construction projects under the
direct leadership and management of government agencies at and above county
levels and investments by enterprises and institutions at and above county
levels are covered in urban investment in fixed assets.
Investment in Real Estate Development refers to 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
pure land transactions.
Investment in
Housing Construction in Urban Areas and in Industrial and Mining Areas refers to 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.
Investment in Rural Areas refers to investment in fixed
assets by enterprises, institutions and individuals in rural areas.
Total Size of Construction refers to the
planned total investment for all construction projects during the reference
period.
Total Size of Investment in Projects under
Construction refers to
the planned total investment of all projects under construction at the end of
the reference period.
Net Size of Investment in Projects under
Construction
refers to the required investment of all projects under construction at
the end of the reference period.
Net Size of Investment = Total Size of Investment
– accumulated completed investment
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. In general, one
project or one enterprise or institution can only be classified into one
sector.
Investment in Fixed Assets by Jurisdiction
of Management
refers to the classification of investment by the competent authorities
under which investment is made by construction units, enterprises, institutions
or administrative units.
(1) Central investment refers to the
investment in projects or by enterprises, institutions or administrative units
which are under the direct leadership and management of the CPC Central
Committee, the NPC Standing Committee, the State
Council and of the national commissions, ministries, agencies and state-owned
large corporations. Various ministries and departments of the State Council
prepare and implement plans for investment in fixed assets by those
departments, and arrange and ensure the supply of materials and key equipment
required for the projects.
(2) Local investment refers to the
investment in projects or by enterprises, institutions or administrative units
which are under the direct leadership and management of departments under the
provincial, prefecture and county governments. Also included are projects by
foreign-invested enterprises and enterprises without competent managing
authorities.
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 and technical
transformation, 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.
(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 construction
projects by existing enterprises or institutions in innovation or technical
transformation of the old facilities (including auxiliary production equipment
and welfare facilities). Also
considered as reconstruction is the construction of new workshops by the
existing enterprises or institutions to change the variety of products to meet
the market demand (such as the production of civil products by defence industries), or to bring the designed production
capacity into full play through a more balanced production process on
production lines. Technical transformation refers to replacement of old
technology or equipment by new technology or equipment, in order to expand the
reproduction through improvement of technology contents in production, to
improve product quality, to promote new products, to save energy and reduce
consumption and to improve overall social-economic efficiency. Contents of
technical transformation include: updating of machinery, equipment and tools;
reforming production process by using energy or materials saving technology; construction
of factory workshops and transformation of public facilities; improvement of
working conditions and environment, etc.
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.
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; and
(4) physical measures (volume, capacity,
area, and length) of construction, which is typical for non-industrial
projects, for instance, the length of railways put into operation, the length
of highways, the capacity of reservoirs, the capacity of warehouses, 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 and Codes for New Production
Capacity (Project Efficiency). 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 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.
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.