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 of the whole country and related
fees, expressed in monetary terms during the reference period. It is a
comprehensive indicator which shows the size, structure and growth of the
investment in fixed assets, providing a 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 State-owned units, collective-owned units, individuals, joint
ownership units, share-holding units, as well as investments by entrepreneurs
from foreign countries and from
Urban Investment in Fixed Assets refers to
construction projects involving a total planned investment of 500,000 yuan and over by enterprises of various types of ownership,
institutions, administrative units and individuals in urban areas, investment
in real estate development. 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 investment by real
estate development companies, commercialized buildings construction companies
and other real estate development units of various types of ownership in the construction
of 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 supply, telecommunications, land leveling
and other infrastructural projects. It does not include activities in pure land
transactions.
Investment in Rural Areas refers to investment in fixed
assets by enterprises, institutions, administrative units and households in
rural areas.
Total Size of Construction refers to the
planned total investment for all construction projects during the reference
period. This item should correspond with projects under work.
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 outstanding requirement of investment of all projects under
construction at the end of the reference period.
Net size of investment in projects under
construction= Total size of investment – Accumulated completed investment of
projects under construction
Sources of Funds for Investment in Fixed Assets are categorized
as funds from the State budget, domestic loans, foreign investment, self-raised
funds, and others, depending on the sources of investment.
(1) Fund from the State budget consists of
budgetary appropriation and loans from the 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 from business 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 authorities, special loans by government,
loans arranged by local government from special funds, domestic reserve loan,
and working loan.
(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 investments. Excluded from this category is capital in foreign
exchanges owned by
(4) Self-raised funds refer to
extra-budgetary funds for investment in fixed assets received during the
reference period 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 sources other than those listed above, including
capital 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 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 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 private investment in housing construction
in urban areas and in industrial and mining areas.
(1) New construction in general refers to
construction projects, which start from scratch, of enterprises, institutions,
administrative agencies. In case the size of the existing unit is quite small,
and the value of newly added fixed assets is more than three times of the the original value, 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) or adding new production capacity. Newly
constructed accommodation for the operation of institutions and administrative
organizations (such as newly constructed buildings for teaching in schools,
buildings for clinics or wards in hospitals, etc.) are also classified as
expansion.
Also included in 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 expanding the production
capacity of original products or producing new products.
(3)
Reconstruction and technical transformation 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, to reduce
consumption, to expand the production scale 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 and the mode of implementation, 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 houses
and buildings and the installation of various kinds of equipment and
instruments. They include construction of houses; equipment foundations,
industrial kilns and stoves, and metal structure work; preparation works and temporary
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 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
wiring and cabling for electric power and for communications; installation of
various machinery and equipment; testing operation for pre-testing the quality
of installation projects, and land and other development work conducted by real
estate developers for commercialized housing. The value of equipment installed
is itself 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 the cut-off point 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 cut-off point for fixed
assets.
(3) Other expenses refer to expenses arising
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 from the angle of the speed of the construction. Depending on the
nature of construction activities, projects under construction can also be
classified into projects beginning construction in current year, winding-up
projects in current year and stopped or suspended projects in previous years
(with resumption of work in current year).
Projects Completed and Put into Use Industrial projects refer to the major
projects and anxilliary facilities having been
completed in accordance with the design documents, resulting in forming
production capacity and having checked and accepted after relevant tests, while
the living and welfare facilities having been completed and being capable of
ensuring normal production. Non-industrial projects refer to the major projects
and anxilliary facilities which have been completed
in accordance with the design documents ; have been
checked, accepted after relevant examination; and have been formally delivered
for use.
Newly Increased Production Capacity (or
Project Efficiency) refers to the increase in design capacity (or project
efficiency) through investment in fixed assets, which reflects the
accomplishment of investment in fixed assets in physical form and serves as an
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) volume of
output of products, i.e. the volume of 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) volume of raw materials processed per
unit of time, 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.
The special features of projects may
sometimes call for the combined use of two or more measurements to reflect the
increase in production capacity (or project efficiency); for instance, the new
capacity for the production of internal combustion engines is expressed in sets
per year and kilowatts per year simultaneously.
To standardize the nomenclature and unit of
measurement for newly increased production capacity (or project efficiency),
the National Bureau of Statistics has developed the 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 the
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 also
an important basis for monitoring the progress, calculating the cost, analyzing
the efficiency and studying the supply of building materials in relation to 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 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 owner units.
Completion Rate of Floor Space of Buildings refers to the
ratio of the floor space of buildings completed in a certain period of time to
the floor space of buildings under construction in the same period.
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 a
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
Commercialized Housing Sold refers to total
contracted area of commercialized 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 Commercialized Housing Sold refers to the
total contracted value (i.e. value of sales/purchase for selling/purchase of
commercialized housing as designated in the contract signed by both sides)
during the reference time. This indicator has the same coverage as the area of
commercialized housing sold, which constitutes floor space of completed housing
and floor space of housing yet to be completed.
Economically Affordable Housing refers to housing constructed according to the State Plan for economically
affordable housing. The features of houses of this category are low cost of
construction and low prices, and therefore are affordable to mid-income and 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 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-income and low income households.