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 indicatorwhich
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
Hong Kong, Macau and
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
jurisdictionof 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
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 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 const ruction activities, projects under construction can also be
classified into projects under construct ion in current y ear, 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 project s 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 in-vestment.
The
newly increased product ion 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 in-creased, or capaCity (in kilowatt s) 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 f or 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 set s 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
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 pr ogress, calculating the cost, analyzing the efficiency and
studying the sup ply 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 construct ion during the reference period, including floor
space of newly start ed 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 const ruction completed in the current period,
and floor space of const ruction started and then suspended in the current
period are also included in the floor space under const ruction 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 const ruction in the same period. This indicator reflects the investment
result from the perspective of t he speed of construction.
Newly Increased Fixed Assets refer to the newly in-creased value of
fixed assets, constructed or purchased, that have been transfer red 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 construct ion 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 transfer red 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 const ruction
costs and marketing pr ices 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) pr ices f or
projects on villas or high- grade apartments are higher by over 100% com-pared
with the aver age 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 construct ion 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.