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, joint ownership units, share-holding units, private units, individuals as well as investments by entrepreneurs from Hong Kong, Macao and Taiwan, foreign investors and others.

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 Fixed Assets (Excluding Rural Households) refers to the urban investment in fixed assets under the previous statistical coverage plus project investments by rural enterprises and institutions.

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.

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 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: State budget consists of general budget, government fund budget, operation budget of state-owned assets and social security fund budget. Funds for investment in fixed assets from various budgets are reported as fund from the state budget, of which, the general budget utilized on fixed assets investment includes investment on infrastructure construction, vehicle purchase tax, post-disaster restoration and reconstruction funds and other financial investment. Government bonds at all levels should also be included.

(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 and by non-bank financial institutions.

(3) Foreign investment refers to overseas 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 (including funds from foreign direct investment income that are reinvested in fixed assets domestically). Excluded from this category is capital in foreign exchanges owned by China (foreign exchanges owned by the central and local governments, foreign exchanges retained by enterprises, foreign exchanges by enterprises through the regulating mechanism, loans in foreign exchanges issued by the Bank of China with its own fund, etc.). In calculating the utilization of foreign capital, foreign currencies are converted into Chinese Renminbi applying the current exchange rate, which is the exchange rate at the end of the reference period. .

(4) Self-raised funds refer to funds for investment in fixed assets received during the reference period by investing units, including investment in fixed assets using own funds of various enterprises and institutions or funds raised from other units other than financial funds, funds borrowed from financial institutions and overseas funds. (5) Others refer to funds for investment in fixed assets received from sources other than those listed above, including 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, instead of being determined by industrial classification of the project enterprises. The project will be classified according to major product if there are several kinds of products yielded, In general, one project 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 through unified organization or lower-level commissions, which include departments direct under central government (i.e. survey offices at all level of the National Bureau of Statistics) and enterprises and institutions directly under central government (like the Industrial and Commercial Bank of China, China Telecom and China National Petroleum Corporation)..

(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, purely construction of living facilities, moving, restoration and purely purchasing. However, investment by type of construction is not applied to investment by real-estate development units and investment by rural households.

(1) New construction in general refers to construction projects, which start from scratch. The existing projects invested by enterprises, institutions and administrative agencies cannot be classified as new construction. 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 original value, the expansion will be considered as new construction.

(2) Expansion refers to construction of new 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 by enterprises and institutions. 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; treatment transformation of “three wastes” (waste gas, waste water and industrial residue) aiming at environmental protection; improvement of working conditions and environment, etc.

Investment in Fixed Assets by Structure

(1) Construction refers to the construction of houses and buildings, also known as work volume of construction. This part of investment can only be achieved through construction activities, it is the major component of the total investment in fixed assets.

(2) Installation refers to the installation of various kinds of equipment and instruments, also known as work volume of installation.

The value of equipment installed itself is not included in the value of installation projects.

(3) 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.

(4) Other expenses refer to expenses arising during the construction or purchase of fixed assets other than those mentioned above.

Number of Projects under Construction refer to number of all projects with actual construction or installation activities in current year, including newly started projects, projects started previously and extended into the current year, projects completed and put into operation in current year, projects suspended previously and resumed in current year, and projects started this year but suspended or postponed in current year. 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.

Number of Projects Put into Use refer to projects have completed the main construction and correspondent auxiliary facilities in accordance with the design documents, resulting in forming production capacity (efficiency) and have been checked and accepted after relevant tests, 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. The main indicators include: construction scale, scale of projects under construction in current year, the accumulated newly increased production capacity (project efficiency) since the start of the projects and the newly increased production capacity (project efficiency) of current year.

Construction Scale refers to the total designed production capacity (project efficiency) of the construction projects in accordance with the design document, including those have been put into operation and those that have not been completed.

Scale of Projects under Construction in Current Year refers to the designed production capacity (project efficiency) of a single project (or renovation project) under construction in the reference period, including the designed production capacity of projects that have been started previously and still under construction in the current year, the newly started projects, and projects that have been completed and put into operation in the reference period or those have been started but suspended or postponed in the reference period. Projects that have been completed and put into operation, suspended or postponed before the reference period, and projects that have not been officially started in the reference period are not included.

The Accumulated Newly Increased Production Capacity (project efficiency) since the Start of the Projects refers to the accumulated newly increased production capacity of all the single projects which have been put into use from the beginning of the projects till the end of current year.

The Newly Increased Production Capacity (project efficiency) of Current Year refers to the production capacity (project efficiency) that has been completed and put into operation in current year according to the calculation conditions and standards on newly increased production capacity (project efficiency).

Floor Space under Construction refers to the total floor space of all the buildings in the reference period,, including floor space of newly started buildings during the reference period, floor space of construction extended form the previous period to the reference period, floor space of construction suspended or postponed in the previous period and resumed in the reference period, floor space of construction completed in the reference period, and floor space of construction started and then suspended or postponed in the reference period.

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 put into use.

Newly Increased Fixed Assets refer to the value of fixed assets that has completed the construction and purchase, and has been delivered to the production or owner units, including investment in projects that have been completed and put into operation in current year and the investment in equipment, tools and appliance that meet the standard of fixed assets and fees that should be apportioned. 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.