Lujun Sun, China

Director General

Capital Account Management Department

State Administration of Foreign Exchange, China

Transition Economy Program (’03)

Mr. Lujun Sun was appointed Director-General of the Capital Account Management Department, State Administration of Foreign Exchange of China in August 2010.  He is as such responsible for foreign exchange administration under capital account, researching and making policy on capital account convertibility of renminbi.
 
Lujun Sun graduated with a Masters Degree in Economics from Renmin University of China in 1993. He completed his Masters in Public Policy at GRIPS in 2003.Mr. Lujun SUN started his career as official in charge of foreign exchange administration in Beijing in 1993. Before he was promoted to Deputy Director-General of the Capital Account Management Department of State Administration of Foreign Exchange (SAFE) in September 2004, he had worked in the Policies and Regulations Department, the Supervision and Inspection Department, and the Current Account Management Department of SAFE for more than ten years.

The main responsibilities of the Capital Account Management Department are as follows:

• To carry out supervision and management of transactions under the capital account, foreign exchange receipts and payments, foreign currency exchange, and the use of funds and foreign exchange accounts both at home and abroad;

• To carry out registration for direct investments, management of foreign currency exchange, and relevant statistical monitoring in accordance with the law;
• To exercise relevant management of short-term external debt, contingent liabilities, external claims, and so forth;
• To undertake management of the registration and statistical monitoring of all the requirements for the external debt;
• To carry out management of market access for the relevant foreign exchange business of non-bank financial institutions other than insurance institutions and management of foreign exchange receipts and payments and foreign currency exchange;
• To carry out registration and management of the foreign exchange receipts and payments related to cross-border investment in securities or derivative transactions.

Mr. Sun has witnessed significant enhancement of capital account convertibility of renminbi in recent years, and has been involved in the following major reforms of foreign exchange administration under the capital account since 2004:

• Allowing international development institutions to issue RMB denominated bonds in domestic market in 2004;
• Deregulating external lending by domestic enterprises to their overseas affiliated entities in 2004, and further relaxing restrictions in 2009/2012;
• Allowing domestic entities to issue RMB denominated bonds in Hong Kong market in 2005;
• Relaxing compulsory requirement on repatriation and surrendering of foreign exchange by domestic entities in 2006;
• Introducing Qualified Domestic Institutional Investor (QDII )scheme in 2006, with a total of 81.2 billion USD of quotas being granted to 114 QDIIs by the end of October 2013;
• Raising the quota of Qualified Foreign Institutional Investor (QFII ) to 30 billion USD after the QFII scheme being introduced in 2002, and further raising QFII quota to 80 billion USD in April 2012 and to 150 billion USD in July 2013, with a total of 48.5 billion USD of quotas being granted to 222 QFIIs by the end of October 2013;
• Allowing cross-border RMB business(trade settlement and capital transactions) from 2009;
• Introducing Renminbi Qualified Foreign Institutional Investor (RQFII ) scheme in 2011 with an initial quota of 20 billion yuan, and raising the RQFII quota to 70 billion yuan in April 2012, to 270 billion yuan in November 2012 and to 370 billion yuan in July 2013, with a total of 139.6 billion yuan of quotas being granted to 47 RQFIIs by the end of October 2013;
• Significantly streamlining approval procedures of foreign exchange administration under capital account, including direct investment, overseas listing, portfolio investment abroad, and external debt since early 2013.