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 the investment by the stateowned units, the investment by the urban and rural collective units, the investment by the units of other types of ownership and the investment by the individuals in the urban and rural areas. According to China's current planning management system, the investment in fixed assets in the whole country is classified into the following four part:investment in capital construction, investment in innovation, investment in real estates development and other investment in fixed assets. The investment by the urban and rural collective units includes the investment by the urban collective units and the investment by the rural collective units. The investment by the units of other types of ownership includes the investment by the units of joint - owned economy, share - holding economy, Sino - foreign joint economy, Sino - foreign cooperative economy, economy exclusively with foreign investment, Mainland - Hong Kong or Mainland - Macao or Mainland - Taiwan joint economy, Mainland - Hong Kong or Mainland - Macao or Mainland - Taiwan cooperative economy, and economy exclusively with investment of Hong Kong or Macao or Taiwan. The investment by the individuals in the urban and rural areas includes the investment in personal house building in the areas under the jurisdiction of city, county, town and special industrial and mining areas as well as the investment in personal house building and purchase of productive fixed assets in the rural areas.
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. 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, useing 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 projet; 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 more than 50 thousand RMB yuan 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 teh 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 work (excluding major overhaul and maintenance projects), 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 the 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 more than 50 thousand RMB yuan 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 wite 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,office buildings,and the complementary service facilities and land development projects, such as roads, water supply, water drainage, power supply, heating, telecommunications, land levelling and other projects of infrastructure. It covers the activities of the non-real estate companies in real estate development or management, but 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:
Ⅰ. The following projects of the state - owned units with the total investment more than 50 thousand yuan, 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 field 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.
Ⅱ. The investment in fixed assets by the collective units:including the projects of construction and purchases of fixed assets by the urban and rural collective units with the planned total investment more than 50 thousand yuan. The investment in fixed assets by the rural collective units are estimated by the Rural Socio - economic Survey Organization, SSB on the basis of the date collected by the sample survey.
Ⅲ.The projcets of construction and purchases of fixed assets by the enterprises or institutions of joint - owned economy, share - holding economy, forein - funded economy, economy funded by the entrepreneurs from Hong Kong, Macao and Taiwan and other economy with the planned total investment more than 50 thousand yuan, which are not included in the plan of capital construction and the plan of innovation.
Ⅳ. The private investment in house construction in the urban areas and industrial and mining areas as well as the individual investment in the 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 th owner of the house is registered as the permanment resident in the locality or not. The individual investment in the rural areas includes the investment in house construction and purchase of producitive fixed assets by the individuals in the rural areas. The individual investment in fixed assets in the rural areas is estimated by the Rural Socio- economic Survey Onganization, SSB on the basis of the data collected by the sample survey.
Sources of Funds for Investment in Fixed Assets are classified into: (1) balance of funds brought forward from the previous year, (2) subtotal of the sources of funds in this year and (3) various payable funds. The subtotal of the sources of funds in this year is further divided into seven categories, i. e. state budgetary appropriation, domestic loans, stocks, bonds, foreign investment, self - raised funds, and others.
(1) State budgetary appropriation includes (a) the appropriation for capital construction fund of the central government, which are appropriated to or enrtrusted the banks to lend to the construction enterprises by state budget, local finance, responsible department and state specialized investment companies; (b) the appropriations for innovation which are appropriated to the enterprises; (c) the special appropriation for capital construction, which is arranged in the finance of central government.
(2) Domesticc 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. Domestic loans include 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) Stocks refers to funds raised by share holding enterprises through issuingt stocks fo the purpose of investment in fixed assets.
(4) Bonds refer to funds raised by enterprises (companies) or financial institutions through issuing various bonds for the purpose of investment in fixed assets, The bonds include Key Enterprise Bonds and Key Construction Program Bonds issued by the banks on behalf of the state specialized investment companies.
(5) Foreign Investment refers to foreign funds borrowed and managed by the government, by individual units, foreign fund in joint venture program, and grants and donations, etc., of which foreign funds borrowed and managed by the government refer to foreign loan borrowed by the government from foreign governments, organizations, or financial institutions under official agreements signed by both parties and the government is responsible for the repayment of both the principal and interests of the foreign loans.
(6) Self-raised funds refer to funds received by construction enterprises from their higher responsible authorities, local governments, and raised within enterprises for the purpose of investment in fixed assets during the reference period.
(7) Other refer to 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 buy 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 investnent 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 defferent sectors according to their economic activities.
Investment in Fixed Assets by Type of Construction The constructin 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 and restoration. The current distinction between capital construction and innovation is determined by China's current planning and management system. There fore the projects of capital construction and innovation can all be classified respectively into new constrction, expansion, etc.
(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 branch of a factory so as to increase the production capacity of the original products. Newly constructed business houses in institutions and administrative organizatins (such as the newly constructed teaching buildings in schools, clinice or bed building in hospitals, and office buildings in administrative agencies, etc.) are 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 Function can be classified into four parts, i.e. construction for primary industry, secondary industry, tertiary industry, and residential buildings, which reflects important proportions of investment among different industries. The function of the investment in capital construction, other investment in fixed assets by state - owned units and the investment by urban collective units is determined according to the specific condition of in dividual projects. The function of the investment in innovation by enterprises and institutions is determined according to the specific condition of relevant projects.
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) Consturction and installation (work volume of construction) 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, underground constructions for air defence and construction of other special projects, installation of various machinery equipment, testing operation for pretesting 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) Ohter expenses refer to investment completed which are not included above. The expenses consist of tem categories: one results in the increase of fixed assets, including administration expenses of construction units, compensation for the loss of land and young crops, subsidies for moving , and expenses on geological prospecting and designing, research and testing, purchase of animals by agricultural and forestry units, planting and operation of various economic forest, purchase of office and residence furniture, purchase of instruments and vessels, introduction of technology and imports of equipment, and joint pretesting of projects; another category of expenses does not result in the increse of fixed assets, including expenese on transprotation of construction machines, training of staff and workers, opening up waste land, and loss of discarded projects.
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, other wise accordign 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 clssified according to its design capacity of products; projects which produce multi - products are classified by the design capacity of the major product or 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 in 1958, 1962, 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 projects which operate independently. 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 efficienty are usually expressed in one of the following forms:
(1) annual production capactiy, such as extraction of coal and petroleum;
(2) raw material processing capacity, such as ore dressing capacity of ore dressing projects, the dressign 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 the space occupied by constructions like pillars or walls and basements. The floor space of multi - story building includes the total floor space of each story, including area occupied by separating walls, watching rooms, doorways, and pillars, but excluding protruding wall structures, artistic decoration, etc. (for example, flight of steps). The space of recessed verand and tantilevered balcony is counted by half of the projection area.
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 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 constrution 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 as ets 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.
Rate of Investment in Projects Uncompleted refers to the ratio of the accumulated investment in projects uncompleted to the total annual investment in projects, This reflects the relaive size of projects uncompleted and the efficiency of investment in fixed assets from the angle of fund utilization. Since projects uncompleted refer to projects started but not completed, they often go beyond one year and therefore, the above ratio could be greater than 1.