Explanatory Notes on Major Statistical Indicators


Investment in Fixed Assets Investment in fixed assets is the essential means for social reproduction of fixed assets. By means of construction and purchase of fixed assets, more advanced technologies and equipment are adopted in the national economy, and new sectors are established, which promote the adjustment of economic structure and the regional distribution of productive forces and enhance the economic strengths so as to provide the material conditions for improving people’s livelihood. This is significant for speeding up the drive of socialist modernization in China.

Amount of investment in fixed assets refers to the volume of activities in construction and purchases of fixed assets in monetary terms. It is a comprehensive indicator which shows the size, pace, proportional relations and use orientation of the investment in fixed assets. Investment in fixed assets includes, by registration 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, Macao and Taiwan, and by other units. According to China’s current management system, the investment in fixed assets is classified into the following four parts: investment in capital construction, investment in innovation, investment in real estates development and other investment in fixed assets.

Investment in Real Estate DevelopmentIt includes 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 simple land transactions.

Individual Investment in Rural AreasThe individual investment in the rural areas includes the investment in house construction and purchase of productive fixed assets by the individuals in the rural areas.

non-agricultural investment in rural areas refers to the project which the estimated total investment amount of its fixed assets built or bought by the non-agriculture units in rural areas is over 5 million yuan. The non-agricultural units include two kinds as below:

I.enterprises. 1.Collective Co. (including companies both directly managed by collective leadership and rent to the private),2.Stock-hoiding cooperation,3.Joint Ownership Enterprises,4.Limited liability Corporations,5.Share-holding corporations Ltd.,6.Private enterprises,7.Joint ventures or Cooperative Operation with Hong kong, Macao and Taiwan,8.Foreign joint ventures or Cooperative Operation Enterprises,9.other Enterprises

whether the associated companies and the joint ventures should be considered as the rural fixed assets depends on whether they are actually possessed or managed by rural communities or privates. Their investment amounts refer to the capital which had been actually invested into the enterprises. Private businesses which employ 8 or more workers should be considered as enterprises in statistics 

II. public undertakings and public communities in rural areas.

Newly Increased Fixed Assets refer to the newly increased value of fixed assets through investment, including the value of projects completed and put into production, the value of equipment, tools, and vessels considered as fixed assets, as well as the relevant expenses as investment in fixed assets . This is a comprehensive indicator of investment in fixed assets, reflecting the achievements of investment in fixed assets in different periods, different sect ors, and different regions.

Newly Increased Production Capacityrefers to the increase of designed capacity and project efficiency through investment in fixed assets, which reflects the accomplishment of investment in fixed assets in kind. The calculation of newly increased production capacity is based on individual project which operates independently and efficiently. When an individual project is completed and checked and accepted and put into production, it is counted as newly increased production capacity.

The newly increased production capacity and project efficiency are usually expressed in one of the following forms:

(1)annual production capacity, such as extraction of coal and petroleum;

(2)raw material processing capacity, such as ore dressing capacity of ore dressing projects, the dressing capacity of a coal washery;

(3)number or capacity of major equipment increased, such as the number of cotton spindles increased and the capacity of generating sets increased;

(4)physical measures of construction, such as volume, capacity, area, and length, for instance, the capacity of reservoirs, the length of railways or highways.

Newly increased production capacity in terms of quantity is calculated in designed capacity in general, which refers to the production capacity of a project under normal conditions designed in construction documents regardless of the actual output.

Statistical units in construction industries refers to the legal enterprises which build architectures or install equipments.  The legal enterprises should meet all the demands as follows, 1. being formed legally with own name, organizational structure and working place. Can fully bear civil responsibilities. 2. possessing and using its own assets independently, which means it should be able to incur liabilities and has right to make contracts with other enterprises. 3. should be an independent accounting unit which can draw balance sheet.

Gross Output Value of Construction(Output Value of Projects Under Construction)refers to total of construction products, expressed in money terms,completed by construction and installation enterprises during a given period of time. It includes:

(1)Output value of construction projects, that is the value of projects covered by the project budgets;

(2)Output value of installation projects, that is the value of the installation of equipment,(excluding the value of the equipment to be installed);

(3)Output value of repair of buildings and structures, that is the value created through the repairs of buildings or structures, but does not include the value of buildings or structures being repaired and the value of the repair of production equipment;

(4)Output value of manufactured  non-standard equipment, that is the value of nostandard production equipment(including raw materials and manufacturing cost)made for the construction project, and the equipment manufactured by subsidiary workshops.

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, 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.

Floor Space of Buildings Completed refers to the floor space of buildings completed in the reference period, which have come up to the designed standards and have been put into use.

Total Number of Machinery and Equipment Owned by the Construction Enterprises refers to the number of machines and equipment owned by the enterprises (or units, and listed as the fixed assets of the enterprises(or units) by the end of the year, including machinery and equipment for construction, production and transportation.

Total Power of Machinery and Equipment Owned by the Construction Enterprises refer to the total power of machinery and equipment owned by the enterprises(or units), and listed as the fixed assets of the enterprises (or units) by the end of the year, including machinery and equipment for construction, production and transportation. The power of the machinery is calculated on basis of the designed or verified capacity, covering the power of the machinery/equipment and the separate power equipment serving the machinery/equipment (such as electric motors), but excluding welders, transformers and boilers. The unit use for the calculation of power is kilowatt, with horsepower converted to kilowatt by 1horsepower=0.735 kilowatt.

Income from Settlement of Projects refers to the income received by the construction enterprise/unit from the completed portion of the project through settlement procedures with the contracted during the reference period, and other charges to the contracted as operational costs, such as facility fee, labor insurance premium, moving cost of construction unit, as well as various types of claims to the contracted.

Profit from Settlement of Projects refers to profit realized through settled projects. It is calculated with the following formula: Profit from Settlement of Projects=Income from Settlement of projects-Settled Cost-Settled Taxes and Other Cost.