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06. INVESTMENT IN FIXED
ASSETS |
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| Indicator
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Explanation
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| Total Investment in Fixed Assets in the Whole Country
| 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.
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| 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. Total investment
in fixed assets in the whole country 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,
Macau and Taiwan, and by other units. According to China's
current management system, the investment in fixed assets
in the whole country 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.
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| Investment in Capital Construction
| Capital construction refers to the new
construction projects or extension projects and the
related work of the enterprises, institutions or administrative
units mainly for the purpose of expanding production
capacity or improving project efficiency covering only
projects each with a total investment of 500,000 RMB
yuan and over.
It includes: (1) projects listed in the capital construction
plan of the current year of the central government and
the local governments at various levels as well as the
projects, though not listed in the capital construction
plan of the current year, but continued to be constructed
in this year, using the investment listed in the plan
of capital construction of previous years and carried
forward to this year (also using the equipment and materials
kept in stock of the capital construction);
(2) new construction projects arranged both in the plan
of capital construction and the plan of innovation;
extension projects with the newly increased production
capacity (or project efficiency) up to the standard
of a large and medium-sized project; and the projects
of moving the whole factory to a new site so as to improve
the distribution of productive forces;
(3) new construction projects, extension projects or
restoration projects with the total investment of 500,000
RMB yuan and over by the state-owned units, though listed
neither in the plan of capital construction nor in the
plan of innovation; the projects in the state-owned
units of moving the whole factory to a new site so as
to improve the distribution of productive forces; and
the projects of building additional business houses
by the administrative units and institutions and building
welfare facilities by the administrative units.
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| Investment in Innovation
| Innovation refers to the renewal of fixed
assets and technological innovation of the original
facilities by the enterprises and institutions as well
as the corresponding supplementary projects and the
related work (excluding major overhaul and maintenance
projects) covering only projects each with a total investment
of 500,000 RMB yuan and over.
It includes: (1) projects listed in the innovation plan
of the current year of the central government and the
local governments at various levels as well as the projects,
though not listed in the innovation plan of the current
year, but continued to be constructed in this year,
using the investment listed in the plan of innovation
of previous years and carried forward to this year;
(2) projects of technological innovation or renewal
of the original facilities, arranged both in the plan
of innovation and in the plan of capital construction;
extension projects (main workshops or a branch of the
factory) with the newly increased production capacity
(or project efficiency) not up to the standard of a
large and medium-sized project; and the projects of
moving the whole factory to a new site so as to meet
the requirements of urban environmental protection or
safe production; (3) projects of reconstruction or technological
innovation with the total investment of 500,000 RMB
yuan and over by the state-owned units, though listed
neither in the plan of capital construction nor in the
plan of innovation; the projects in the state-owned
units of moving the whole factory to a new site so as
to meet the requirements of urban environmental protection
or safe production.
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| Investment in Real Estate Development
| It 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.
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| Other Investment in Fixed Assets
| refers to the construction and purchases
of fixed assets not listed in the investment in capital
construction, investment in innovation and investment
in real estate development. It includes:
A) The following projects of the state-owned units with
the total planned (or actually needed) investment of
500,000 yuan and over, which are not included in the
plan of capital construction and the plan of innovation:
(1) projects of oil fields maintenance and exploitation
with the oil fields maintenance funds and petroleum
development funds; (2) opening and extending projects
with the maintenance funds in coal, ore and other mining
enterprises and logging enterprises; (3) project of
reconstruction of the original highways and bridges
with the highway maintenance funds in the department
of communication; (4) projects of construction of warehouses
with the funds of simple construction in the commercial
department.
B) The investment in fixed assets by urban collective
units: refer to projects of construction and purchases
of fixed assets with the planned total investment of
500,000 yuan and over by all collective units in cities
and county towns and in townships which are approved
by the State Council or provincial governments, excluding
investment by collective units under township enterprise
administration offices.
C) The projects of construction and purchases of fixed
assets by the enterprises, institutions or individuals
other than those mentioned above with total investment
of 500,000 yuan and over, which are not included in
the plan of capital construction and the plan of innovation.
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| Private Investment in House Construction in Urban
Areas, Industrial and Mining Areas and Individual Investment
in Rural Areas
| The private house construction in the
urban areas and industrial and mining areas includes
all the private house construction under the jurisdiction
of cities, counties, 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. The
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.
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| Sources of Funds for Investment in Fixed Assets
| state budgetary appropriation, domestic
loans, foreign investment, self-raised funds, and others.
(1)State budgetary appropriation refers to appropriation
in the budget of the central and local governments earmarked
for capital construction and for innovation projects,
and the special appropriation from the budget of the
central government for capital construction and for
the transfer fund to banks to be issued as loans for
capital construction projects.
(2)Domestic loans refer to various funds borrowed by
enterprises and institutions 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 replacing
petroleum with coal, special loan for reform-through-labor
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 purpose of investment
in fixed assets, including foreign funds borrowed and
managed by the government, by individual units, foreign
fund in joint venture program, and issue of bonds and
stocks at the international financial markets. The foreign
funds borrowed and managed by the government refer to
foreign loans borrowed by the government from foreign
governments, organizations, or financial institutions
under official agreements signed by both parties, under
which government is responsible for the repayment of
both the principal and interests of the foreign loans.
(4)Self-raised funds refer to funds received by construction
enterprises from their higher responsible authorities,
local governments, or raised by enterprises or institutions
themselves for the purpose of investment in fixed assets
during the reference period.
(5) Others refer to funds received during the reference
period which are not included in the above-mentioned
sources.
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| 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.
The investment in capital construction is classified
by construction projects, while investment in innovation,
other investment by state-owned units and urban collective
units are classified according to the sector which the
whole enterprise or institution belongs to. In general,
one project or one enterprise or institution can only
belong to one sector. In order to reflect more accurately
the proportions among various sectors, the branch factories
of integrated complex are classified into different
sectors according to their economic activities.
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| 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 moving away. In capital
construction, the type of construction is determined
by the condition of the project. In investment in innovation,
in other investment by state-owned units and investment
by collective-owned units, the type of construction
is determined by the condition of the whole enterprise
or institutions. 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
units. In the case in which the value of the original
fixed assets is quite small, and the value of newly
added fixed assets exceeds the original ones by three
times, the expansion construction is considered as new
construction.
(2)Expansion refers to construction of new major production
workshop or independent production line within a factory
or in other locations, or construction of a branch factory
so as to increase the production capacity of the original
products. Newly constructed business houses in institutions
and administrative organizations (such as the newly
constructed teaching buildings in schools, clinics or
bed building in hospitals, and office buildings in administrative
agencies, etc.) are also classified as expansion.
(3) Reconstruction refers to technical innovation and
transformation of the existing equipment and technical
conditions undertaken by enterprises and institutions
for the purposes of technological advancement, improvement
in product quality, enlarging variety of products, promoting
new generation of products, reducing production consumption
and cost, promoting comprehensive utilization of resources,
strengthening treatment of waste gas, waste water and
solid wastes, and safety in production, etc. through
application of new technologies and techniques, use
of new equipment and new materials (including accessory
facilities for production or for living and welfare
purposes).Construction of new workshops for improving
existing production capacity rather than increasing
production capacity is also considered as reconstruction.
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| Investment in Fixed Assets by Structure
| refers to the three major parts of investment
activities, 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, including construction
of various houses, equipment foundations and industrial
kilns and stoves, 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, installation of various machinery
equipment, testing operation for pre-testing the quality
of installation projects. 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 vessels purchased
or self-produced which come up to standards for fixed
assets. Equipment, tools and vessels 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 or not.
(3)Other expenses refer to expenses occurring during
the construction or purchase of fixed assets other than
construction, installation or purchase of equipment
and instruments.
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| Capital Construction Projects by Size
| The classification of size of capital
construction projects should be determined according
to the total scale or total investment set in the approved
construction plan by higher responsible authorities
or in the tentative design, otherwise according to the
total scale or total investment set in the current capital
construction plan of the state, provinces, autonomous
regions, and municipalities directly under central government.
Industrial projects which produce unitary products are
classified according to its design capacity of products;
projects which produce multi-products are classified
by the design capacity of the major product or by the
total planned investment. Standards for the Classification
of Construction Projects into large, medium-sized and
small ones issued by the government are the base for
size division of construction projects, which was revised
five times in 1958, 1962, 1972, 1977, and 1979 respectively
and therefore, data on projects by size are not entirely
comparable from year to year.
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| Projects under Construction
| refer to projects having construction
and installation activities undertaken in the reference
period, including projects started in the reference
period, or continued from the previous period, or completed
and put into production or suspended in the reference
period.
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| 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 projects and accessory facilities
completed which possess the designed capacity and have
been checked, accepted and formally put into production.
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| Newly Increased Production Capacity
| refers 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.
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| Floor Space of Buildings under Construction and
Completed
| refers to total floor space in each story
of buildings calculated from the outside line of building
walls, including both usable space and the space occupied
by constructions like pillars or walls. The floor space
of multi-story buildings includes the total floor space
of each story (including basement).
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| Floor Space of Residential Buildings
| refers to the floor space of the residential
buildings under construction and completed among the
total space of buildings under construction and completed.
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| 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.
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| 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.
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| 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 construction in the
same period which reflects the investment result and
economic efficiency of the construction industry from
the angle of the speed of project construction.
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| 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 sectors, and different regions.
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| 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 angle of the speed of projects construction.
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| 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.
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