Explanatory Notes on Main Statis

Explanatory Notes on Main Statistical Indicators

According to requirements of National Bureau of Statistics, since 2015, Beijing has started to issue data on income and expense of residents in the city and residents in urban and rural areas according to new standards after the reform. As compared with former standards, the new standards mainly show differences in the following 3 aspects: first, according to national standards on division of urban and rural areas, village committees in urban areas that were classified into rural areas are now classified into urban areas; second, standards on resident income and expense indicators are adjusted. Core indicators reflecting resident income are unified from original “per capita disposable income” of urban residents and “per capita net income” of rural residents to “per capita disposable income”; third, based on data on resident income and expense in urban and rural areas, data on per capita disposable income and per capita consumption expense of residents in Beijing are added.

Disposable Income refers to the total income at the disposal of sampled households gained during the survey, which can be used for final consumption expenditures and savings. Disposable income includes cash and income in kind. By income source, disposable income can be divided into 4 types, namely wage income, net business income, net property income and net transfer income. The following formula is used:

Disposable Income = wage income + net business income + net property income + net transfer income

Of which: Net business income = business income - business expense - depreciation of productive fixed assets - production tax

Net property income = property income - property expenditure

Net transfer income = transfer income - transfer expenditure

Wage Income refers to all payments of labour and various welfares earned by employed persons through all channels, including all payments of labour and welfare gained from institutional or individual employers, various freelance work, part-time job, and scattered work.

Wages refer to all cash rewards received by an employee from institutional or individual employer.

Physical Welfare refers to various physical products and service discounts provided by an institutional or individual employer to the employee for free or at a low price.

Other Income from Work refers to other cash compens- ation gained by an employed person except wages and various social security benefits paid by the employer.

Net Business Income refers to the net income of a family or family members from productive and operating activities. It is the net income of all operating income deducting business cost, depreciation of productive fixed assets and production tax. The following formula is used:

Net business income = business income - business cost - depreciation of productive fixed assets - production tax

Net Property Income refers to the net income of a family or family members earned by deducting relevant expenses from returns of their financial assets, non-financial assets (such as house) and natural resource delivered to other institutions, families or individuals for management. Net property income does not include income from premium of property ownership transfer and it shall be regarded as “non-revenue proceeds”.

Dividend Income refers to legal benefits of households or individuals who deliver their capitals as shareholders to the company for management or disposal. It includes stock dividend regularly distributed by stock issuance company according to share amount, annual bonus and stock dividend and bonus gained from shares in collective properties or other investments. Benefits (including losses) gained from stock trading settlement are not included and shall be regarded as “non-revenue proceeds”.

Net Proceeds from Saving Insurance refer to the net proceeds of insurance gained by households or members for participating in commercial saving insurance after the paid insurance principal and relevant fees are deducted, excluding the income of insurance claim paid by the responsible person to insurance beneficiary.

Transfer Income refers to various recurrent transfer payment from the nation, institutions and social groups to households, along with recurrent income transfer among households, including retirement pension, social relief and allowance, policy production subsidiary, policy living subsidiary, disaster relief fund, recurrent donation and compensations, medical expense reimbursement, alimony income among households and income mailed or brought by non-permanent members of such household, etc. Transfer income does not include physical donation among households.

Other Recurrent Transfer Income refers to other recurrent transfer income of households excluding the various transfer income stated above. It includes recurrent donation income, recurrent compensation income, unemployment insurance benefits and relative boarding expense, etc.

Net Transfer Income refers to net income after deducting recurrent or compulsory transfer payment of sampled households to the nation, institutions, households or individuals from various recurrent transfer payments by the nation, institutions, social groups to households and recurrent income transfer among households.

Net Transfer Income the following formula is used: Net transfer income = transfer income - transfer expenditure

Transfer Expenditure refers to the recurrent or compulsory transfer payment made by the sampled households to the nation, institutions, households or individuals, including tax payment, various social security expenditures, alimony expenditure, recurrent donation and compensation expenditure and other recurrent transfer expenditure, etc.

Income from Asset Sales refers to the income received by the sampled household for selling any household properties. As the sale of household property is a conversion of physical form of household property to monetary form, and the total amount of household properties remains unchanged, the income from selling property is not included in the disposable income.

Account Subsidy refers to the cash paid by authorities of statistics, employers and other channels to the sampled household for its responsibility of accounts keeping, excluding any allowance in kind.

Loan Proceeds refer to the non-productive and non- operating income which causes no change in the amount of household asset, including withdrawal of bank deposits, borrowings and lending repaid, etc.

Total Household Expenditures refer to all actual expenditures including credit expenditures. It includes consumption expenditure, production and operation expenditure, properties expenditure, transfer expenditure, partial commercial insurance expenditure, property purchase and non-recurrent transfer expenditure, and loan expenditure.

Consumption Expenditure refers to total expenditures of households for consumption in daily life, including expenditures on consumer goods and services. By usage, it includes 8 categories, i.e. expenditures on food, tobacco and liquor, clothing, housing, living articles and services, transportation and communication, educational, cultural and recreational services, healthcare and medical services, and other goods and services. By source, it includes cash consumption and physical consumption (including self-produced and self-used products and those from institutions or employers, government and other social organizations).

Production and Operation Expenditure includes expenditure for agricultural production and operation and for non-agricultural production and operation.

Property Expenditure refers to relevant costs including interest paid by the sampled households for purchasing or maintaining properties.

Partial Commercial Insurance Expenditure includes accident insurance, commercial medical insurance (including critical illness insurance), other non-saving commercial insurance and other saving commercial insurance.

Expenditures for Asset Purchase and Non-recurrent Transfer Payment Asset purchase expenditure refers to all expenditures for building and purchasing houses and expenditure on purchase and construction of productive fixed assets; non-recurrent transfer expenditure includes gaming expense, weddings and funerals (cash gift and entertaining, etc.) expense, lump-sum compensation and lump-sum gifting, etc.

Loan Expenditure refers to the revolving non-productive and non-operating expenditure which causes no change in ownership, including saving deposits, borrowings; capitals repayment, such as repayment of borrowings and various loans, etc.

Dependents Per Labour Force refers to the number of permanent population in the sampled household divided by the number of full/semi labourers. The following formula is used:

Dependents Per Laborer = Number of Permanent Population in the Sampled Households / Number of Full/Semi laborers

Full/Semi Labour Force in Rural Households refers to persons among permanent family members in rural households who are capable of working and work frequently. This is one of the indicators for basic production elements, and an important source for production development and increase of farmer’s household income. As stated in regulations, rural males aged 18-50 and females aged 18-45 are full labours. Males aged 16-17 and 51-60 and females aged 16-17 and 46-55 are semi labor force. Full/Semi Labour Force in Rural Households includes the male and female full/semi labour force within the above-mentioned range age as well as those beyond such range of ages who are capable of working and work frequently; also include labourers among permanent members in rural households who are employees. But it excludes persons who are within the range of labour age but incapable of working.

Total Building Area of Current Houses refers to the total building area of house resided by the surveyed households, which is calculated on the basis of the property ownership certificate or lease certificate. The building area can also be calculated as the usable floor space multiplied by 1.333, which shall deduct the building area of the house specially used for lease.

Engel’s Coefficient Along with the increase in household and personal income, a gradually smaller proportion of income is used for purchase of food. This law is called Engel’s law, and the coefficient reflecting such law is called Engel’s Coefficient. The following formula is used: