Total Investment in Fixed Assets in the Whole Country Total 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.
Investment in Capital Construction Capital construction refers to the new construction projects or extension projects and
the related activities 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.
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 activities
(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.
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.
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.
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.
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-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 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.
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.
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.
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.
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.
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.
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.
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.
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).
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.
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.
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.
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.
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.
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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