Total Inves tment in Fixed Assets in the Whole Country refers to t he volume of activities in construction and p
urchases of fixed ass ets and related fees , expres sed in monet ary terms . It is a comp rehens ive indicator which shows the
siz e, structure and growth of t he investment in fixed assets, p roviding basis for obs erving the progres s of const ruct ion
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 count ries and from Hong Kong, Macau and Taiwan, and by ot her units.
According t o China's current management system, t he inves tment in fixed assets is classified into the following four p arts:
investment in capital cons truction, investment in innovation, inves tment in real est ates development and other investment
in fixed assets.

Investment in Capital Construction Capital construction refers to the new construction projects or extension projects
and the relat ed activit ies of the enterpris es, instit utions or adminis trative units mainly for t he purpos e of exp anding
production capacity (or improving p roject efficiency ), covering only projects each with a total investment of 500,000 RMB
yuan and over. It includes: (1) projects listed in t he capital cons truct ion plan of the current year of the cent ral government
and the local governments at various levels as well as the projects, though not lis ted in t he capit al construction p lan of the
current year, but continued to be constructed in this year, using the investment lis ted in the p lan 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 project s arranged both in the plan of capital const ruct ion and the plan of innovation; ext
ension projects with the newly increased production capacit y (or p roject efficiency) up to the standard of a large and
medium-sized project; and the projects of moving the whole fact ory to a new site so as to improve t he distribution of
productive forces ; (3) new construction projects, extension projects or restoration projects with the t otal 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 busines s houses by the administrative units and
institutions and building welfare facilities by the administrative units.

Investment in Innovation Innovation refers in general to Explanatory Notes on Main Statistical Indicators the
technological innovation of t he original facilities (including renewal of fixed as sets ) by the enterprises and inst itut ions as
well as t he corresp onding supp lementary p rojects for production or welfare facilities and the related activities , 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 p rojects, though not
listed in the innovation plan of t he current year, but cont inued t o be constructed in this year, using the inves tment listed in
the plan of innovation of previous years and carried forward to this year; (2) project s of technological innovation or renewal of
t he 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-s ized project; and the projects of moving the whole factory t o a new site so as to meet the
requirement s of urban environmental p rotection or s afe production; (3) project s of reconstruction or technological
innovation wit h the total investment of 500,000 RMB yuan and over by the state-owned units, though listed neither in the
plan of capit al construction nor in the plan of innovation; the projects in the state-owned units of moving the whole factory to
a new s ite so as to meet the requirements of urban environmental protection or s afe production.

Inves tment in Real Estate Development It includes the inves tment by t he real es tate development companies,
commercial buildings construction companies and other real es tate development units of various ty pes 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, t elecommunications , land leveling and other projects of infrastructure. It
excludes the activities in simple land transact ions.

Other Investment in Fixed Assets refers to the construction and purchases of fixed ass ets with an investment of over
500,000 yuan which are not listed in the investment in capital construction, inves tment in innovat ion and investment in real
est ate development, as well as urban private housing p rojects and investment in fixed ass ets by enterprises, inst itut ions
and individuals in rural areas. It includes:

1) The following projects of the state-owned units with the tot al planned (or actually needed) investment of over
500,000yuan, which are not included in the plan of capital construction and the plan of innovation: (1) p rojects 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) project s of construction of warehous es with the funds of simple construction in the commercial
department.

2) The investment in fixed assets by urban collective units: refer to projects of construction and purchases of fixed ass ets
with t he planned total investment of 500,000 y uan and over by all collect ive unit s in areas under the jurisdiction of cit ies
and county towns (excluding investment by collective unit s under township enterprise adminis tration offices).

3) The projects of const ruction and purchas es of fixed assets by the enterprises, ins titutions (including urban private
enterpris es or instit utions) or individuals ot her than those mentioned above with total investment of 500,000 y uan and
over, which are not included in the plan of capital construction and the plan of innovation. For individual investment, only t he
investment in non-housing projects is to be included.

4) The p rivat e investment in hous ing construction in the urban areas and in industrial and mining areas: including all
private housing construction under t he jurisdiction of cit ies, county towns and industrial and mining areas, no matt er
whether t he owner of the house is registered as the p ermanent resident in the locality or not.

5) The inves tment in rural areas: including investment in fixed asset s by ent erprises, ins titutions and individuals in the
rural areas.

Sources of Funds for Investment in Fixed Assets include fund from state budget, domest ic loans, foreign inves
tment, self-raised funds , and others dep ending on the source of investment.

(1) Fund from stat e budget consists of budgetary app ropriation and loans from st ate budget. More sp ecifically, it includes,
from the budget of t he cent ral government, capital construction fund (operation fund and non-operational fund), special
expenses (e.g. expenses on substituting petroleum with coal), loans from repayment, dis count fund, expens es on innovat
ion and trial production of new product s, expens es on urban construct ion, 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 inves ting units from banks and non-bank financial institut
ions during the reference period for the purpose of investment in fixed assets , including loans issued by banks from t heir
self-owned funds and deposit, loans appropriated by higher resp onsible authorities , sp ecial loans by government (including
loan for subst itut ing petroleum with coal, sp ecial loan for reform- through-labour coal mines), loans arranged by local
government from sp ecial funds , domes tic reserve loan, and working loan, etc..

(3) Foreign Investment refers to foreign funds received during the reference p eriod for the construct ion and purchase of
investment in fixed ass ets (covering equipment, mat erials 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 ot her foreign inves tment. Excluded in this category are capitals in foreign
exchanges owned by China (foreign exchanges owned by the cent ral and local government s, foreign exchanges retained by
ent erp rises, foreign exchanges by enterprises through regulat ing mechanism, loans in foreign exchanges issued by the
Bank of China with its own fund, etc.). In calculat ing the utilization of foreign cap itals, foreign currencies are converted into
Chinese Renminbi applying the current exchange rate when the foreign capit als are actually used.

(4) Self-rais ed funds refer to extra-budgetary funds for investment in fixed assets received by investing units from central
government minis tries, local governments, enterp rises and institutions, including their self-raised funds.

(5) Others refer to funds for investment in fixed assets received from the sources other than those listed above, including
capitals raised t hrough issuing bonds by enterprises or financial institutions, funds raised from individuals and through
donations, and funds trans ferred from other units.

Investment in Fixed Assets by Sector The clas sification of cons truction projects by sector is det ermined by the major
products or the purpos e of the projects when they are put into production or use, and by the nature of their social economic
activities . The investment in capital cons truction is clas sified into different s ectors of the national economy by the nature of
construction projects, while investment in innovation and other investment are classified according t o the s ector to which t he
whole enterp rise or institution belongs. In general, one project or one enterprise or instit ution can only be classified into one
sector. In order to reflect more accurately the relat ion among various sectors, the branch factories of an integrated complex
are classified into different sectors according to the economic activities of the branch factories.

Investment in Fi xed Ass ets by Type of Construction The const ruction projects in general can be classified, by t he
type of construct ion, into new construction, expansion, reconstruction, 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. In capital construct ion, the t ype of construction is determined by the nature of the project. In
investment in innovation, in other investment by state-owned units and investment by collective-owned unit s, the type of
construction is determined by the condition of t he whole enterprise or institutions.

(1) New construction in general refers to newly constructed enterp rises, inst itutions, administrat ive agencies or indep endent
projects from scratch. Construction in the exist ing enterprises, institutions or agencies is not considered as new construction
. In case the ass ets of the existing unit is quite small, and the value of newly added fixed asset s exceeds the original value
of assets by three times, t he exp ansion will be considered as new construction.

(2) Expansion refers to const ruction of new major p roduction workshop, branch factory or independent p roduction line within
a factory or in other locat ions, for the purpose of increasing the production capacity (or improving efficiency) of the original
products. Newly cons tructed houses for the op erat ion of instit utions and administrative organizations (such as the newly
constructed buildings for teaching in schools, buildings for clinics or wards in hosp itals, etc.) are also classified as expansion.
Also included in t he expansion are inves tments 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 exp ending t he production capacity of original
products or producing new products.

(3) Reconstruction refers to innovation or technical t ransformation of the existing facilities (including auxiliary production
equipment and welfare facilities), without building major new workshops or branch factories. Also considered as reconst ruction
is the construction of new workshop s by the existing enterpris es or instit utions for improving the existing production capacity
(improving or changing the variety of products to meet the market demand), rather than increasing the designed capacity
of the main products.

Inves tment in Fixed Assets by Structure By their contents, inves tment activities are classified into 3 categories, i.e.
construction and installation, p urchase of equipment and instrument, and other exp enses.

(1) Construction and installation (work volume of construction and ins tallation) refers to t he construction of various houses
and buildings and installat ion of various kinds of equipment and instruments. They include construction of various houses;
equipment foundations, industrial kilns and stoves, and met al structure work; preparation works for project construction, and
clearing up works p ost p roject cons truct ion; p avement of railways and roads, drilling of mines and putting up of oil pipes;
construction of project s of wat er conservancy; cons truction of underground air-raid shelters and construction of other special
projects; value of equipment for heating, s anitation, ventilation, light ing, gas, paint ing, etc. t hat are covered by the budget
of housing projects; laying out of various pipelines (for s team, comp ressed air, petroleum, tap water and sewage) and lines
for electric power and for communications; installation of various machinery equipment, t esting operat ion for pre-testing the
quality of installation project s, 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) Purchas e of equipment and instrument s refers to the tot al value of equipment, tools , and ins truments purchased or
self-produced which come up to s tandards 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
cat egorized as "purchase of equipment and inst rument s" no matter whether they come up to the standards for fixed
assets.

(3) Other expens es refer to expenses occurring during the construct ion or purchase of fixed ass ets other t han t hose
mentioned above.

Capital Construction Projects by Size The classification of size of capital construction projects should be determined
according to the t otal scale or tot al investment set in the approved construct ion plan by higher responsible authorities or in
the tentative design, otherwis e according to the t otal scale or tot al investment set in the current capital construction plan of
the st ate, provinces, autonomous regions, and municipalities direct ly under central government. Industrial project s which
produce unitary p roducts are classified according to its design capacity of products; project s which produce multi-products are
classified by the design capacity of the major p roduct or by the total planned investment. Standards for the Classification of
Construction Project s 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 with construction and installation act ivities undertaken in the reference
period. All projects that have construction activities undertaken during the reference period are reported as projects under
construction irresp ective of the length of construction work. The number of projects under construction can reflect the actual
size of investment in fixed as sets during a given period, and when compared with t he number of projects complet ed and
put into use during the same period, it demonstrates the results of investment in fixed as sets . Depending on the nature of
const ruct ion activities, projects under construction can also be classified into projects under construct ion in current y ear,
winding-up projects in current year and st opped or suspended projects in previous years (with preservation work in current
year).

Projects Completed and Put into Use Industrial projects refer to the major p rojects and accessory facilit ies complet ed
which result in forming p roduction capacity and have been checked and accep ted while the living and welfare facilities have
been completed and can ensure normal production and formally put into p roduct ion. Non-industrial projects refer to the
major project s and accessory facilities completed which poss ess 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 inves tment in fixed assets, which reflects the accomp lishment of investment in fixed assets in kind and
serves as important basis for evaluating the economic efficiency of investment. The newly increased p roduct ion capacity
(project efficiency) are usually expressed in one of the following forms:

(1) output of p roducts, i.e. the output that the project can produce during a given period (usually a year). For instance, the
capacity in coal mining is express ed in 10,000 tons/y ear, t he capacit y in producing chemical p esticides exp ressed in
ton/year, the capacity in p roducing t ractors in tractor/year, etc. For some chemical product s where the effective contents
differ significant ly, the production capacity is expressed as the designed effective content equivalent, such as in the case of
sulphuric acid, soda ash, caus tic soda, etc;

(2) raw mat erials p rocessing 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 p roject 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
increased, or capacity (in kilowatt s) of power generators increased;

(4) s aved raw materials, fuels or power, which are mainly used for the efficiency of innovation and transformation projects;
and

(5) physical measures (volume, cap acity, area, and length) of construction, which is ty pical for non-industrial project s, for
instance, the length of new railways or highways, the capacity of reservoirs, the floor space of housing projects, capacity for
new students in schools or beds in hospitals, areas under new irrigation project, etc.

Features of projects somet imes call for combined use of two or more measurement to reflect the increas ed production
capacity (or project efficiency), for ins tance, the new capacity for the production of internal combus tion engines are exp
ressed in set s per year and kilowat ts per year simultaneously.

To st andardize the nomenclature and unit of measurement for new production capacity (or p roject efficiency), t he National
Bureau of St atistics has developed Nomenclature for New Production Capacity (Project Efficiency) and Nomenclature for Saving
Raw Materials, Fuels and Power. All report ing unit s with investment activities are required to follow these two nomenclatures
in reporting statis tics on new production capacity (project efficiency).

Floor Space of Buildings under Construction and Completed refers to tot al floor space of the horizontal section of
outer walls above the plinth of t he 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 progres s, calculating t he cost, analy zing 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 t otal space of
buildings under construction or comp leted.

Floor Space unde r Construction refers to t otal floor sp ace 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 p eriod, and floor space of construction suspended during t he previous period and
resumed in t he current period. Floor space of const ruction completed in the current p eriod, 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 t he reference period, which
have been appraised and accept ed (or come up t o the designed standards) and have been transferred to the owners for
use.

Completion Rate of Floor Space of Buildings refers to the ratio of t he 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 reflect s the investment
result from the perspective of t he speed of construction.

Newly Increased Fi xed As sets refer to the newly increased value of fixed assets, constructed or purchased, that have
been transferred to t he inves tors. This is an indicat or that demons trates the results of investment in fixed assets in monet
ary terms, and an important indicat or t o reflect the sp eed of construct ion and to calculate t he efficiency of inves tment.

Rate of Construction Projects Completed and Put into Use refers to t he ratio of the number of construction projects
completed and put into use in certain period of time to the number of projects under cons truction in the s ame p eriod. 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 asset s 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 t he current year, this indicator is expected to be used to reflect t he
emp loyment of fixed assets over a long period of time.

Number of Flats in Comple ted Res idential Buildings refers to total number of flats completed during the reference
period, appraised and accep ted as meeting the st andards for living, and transferred for use. A flat includes sep arate
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 t o commercial houses whose const ruction costs and marketing prices are s
ignificant ly higher t han ordinary housing. Villas are independent structures generally located in the suburbs; high-grade
apartments are multi-s tory 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 comp etent departments in
charge of real estate development and investment plans, and 2) prices for projects on villas or high-grade apartments are
higher by over 100% compared with the average p rices of ordinary commercial hous ing projects in similar locat ion. This
indicator helps to analyze the inves tment 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 t o the st ate plan for economically affordable
housing. Houses of this category featured in low cost in const ruct ion and low prices, and therefore are affordable t o
midincome or low income households. Economically affordable housing project s are develop ed by real es tate comp anies
under the state investment p lan, with the land p rovided through government allocation or tendering procedures. Developers
are exempted from land utilization fees and enjoy another 50% exemption of all ot her legitimate fees , while their profits
are limit ed t o less than 3%, and t he completed houses are sold under the government -guided prices . This indicat or helps
to analyze the investment st ruct ure of the real estate industry and the demand and supply of housing for mid or low income
households.