The Shanghai Stock Exchange has applied to the China Securities Regulatory Commission for permission to close the market for two days on June 30 and July 1 to celebrate Hong Kong's handover to China. There are also strong rumours both the Shenzhen and Shanghai markets will be closed for the entire week in the run-up to the handover in an attempt to prevent possible market unrest. Analysts say Beijing is wary the stock markets may heat up again as investors take advantage of the handover to invest in the markets. Such a move would run contrary to recent efforts by the mainland authorities to cool speculation. Officials at both exchanges said there had been no discussions 'so far' to close the markets for the whole week and they had not received any instructions to close the markets. Beijing has declared July 1 a public holiday, so both the Shanghai and Shenzhen exchanges will be closed that day.