White CollarToo many holidays may discourage investors from cross-border trading

All employees like holidays but that may not be good news for investors. The many public holidays in Hong Kong and on the mainland would limit the chances for them to conduct cross-border trading under the stock through train scheme, which will start next month.

In April, Beijing announced the scheme to allow Hong Kong and international investors to trade up to 13 billion yuan (HK$16.4 billion) a day, or 300 billion yuan in total, in Shanghai-listed A shares, while mainland investors can trade up to 10.5 billion yuan a day, or 250 billion yuan in total, of Hong Kong stocks.

This provides good opportunities for foreign investors to trade the A shares listed in Shanghai. But the scheme will not operate if either the Hong Kong or the Shanghai stock market is closed for a holiday and that may discourage investors from trading.

Hong Kong has 17 public holidays because of its cosmopolitan mix of East and West, with holidays for Christmas, Easter, Buddha's birthday as well as for both the Julian New Year and the Lunar New Year in Asia.

The city has more holidays than major markets such as Britain, which has seven, the United States and Germany, both at 10, and France, at 11.

The mainland has fewer public holidays than Hong Kong, at 11, because it does not take a break for Christmas or Easter. However, it has longer holidays for the Lunar New Year and the national day break in October.