London has become the first city after Hong Kong to be allowed to invest directly in domestic securities in Mainland China. Many commentators had thought that Singapore and Taiwan were next on the list for receiving such rights, but London was able to steal the show with some clever diplomacy. UK institutions will be able to apply for licences to invest yuan directly into China under its Renminbi Qualified Foreign Institutional Investor (RQFII) Scheme. The RQFII commenced in 2011 in Hong Kong, allowing yuan funds raised in the city to be invested in mainland stocks and bonds.