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 Trades 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.