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 refers 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.
Area of Commercial
Housing Sold refers to total contracted area of commercial housing (i.e.
area of floor space as designated in the formal contracts signed by both sides)
during the reference time. It constitutes floor space of completed housing and
floor space of future housing.
Value of Commercial
Housing Sold refer to total value of contracts (i.e. value of
sales/purchase for selling/purchase of commercial housing as designated in the
contracts signed by both sides) during the reference time. It has the same coverage
as the area of commercial housing sold, constituting completed housing and
floor space of future housing
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.