The China Post -- lol -- all the news that fits we link:
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Political instability, rumors drag down shares
2006/6/6
The China Post staff
The weighted price index on the Taiwan Stock Exchange slid 244.37 points to close at 6,715.27 for the biggest daily drop during President Chen Shui-bian's second term and the second biggest daily loss since he took office six years ago.
The number of stocks losing ground far exceeded the gainers -- 781 to 46 -- with 36 stocks remaining unchanged.
Total transaction value reached NT$100.35 billion (US$3.14 billion) on a market turnover of 3.36 billion shares.
Securities analysts attributed the big slide to noneconomic factors, notably the growing concern about political instability and the deteriorating government environment before Chen serves out his second term in 2008.
Despite President Chen's apology to the nation for the strings of scams and scandals involving members of his family and close aides -- as well as his promise to start abiding by the Constitution concerning a proper role should be played by a president -- opposition parties are still pushing for his resignation.
The demonstrators demanding Chen's voluntary resignation over the weekend plan another rally again on the coming Saturday.
Opposition Kuomintang (KMT) Legislator Chiu Yi, who played a key role in uncovering the scams and scandals, filed charges yesterday afternoon against President Chen and Chen's deputy chief of staff Ma Yung-cheng for alleged speculation on the stock market. Ma resigned last week.
Chiu claimed that he got hold of "lethal evidence" to back his charges against the president, the first lady, and Ma. But he said he will only provide the evidence once Taipei prosecutors start handling the case.
The reports that Wu Nai-jen, chairman of the Taiwan Stock Exchange, has decided to quit the post in July, one year before he serves out the current term, highlighted the intensified fight for power among various factions within the ruling Democratic Progressive Party (DPP).
President Chen's latest decision to institute a personnel reshuffle has created many vacancies. Wu has already informed Premier Su Tseng-chang of his decision.
The legislative branch will continue its political standstill, although various parties are trying to hammer out a deal on holding an extra session during the summer recess.
The DPP wants to pass bills for budget programs.
But opposition parties want to pass the rules to set up direct transport links with China after the bill was repeatedly blocked by the DPP at the regular session.
They now also want to give priority to toppling the Cabinet or recalling the president, despite the threat of further boycotts from the DPP.
Most securities analysts do not expect lawmakers to pass any significant bills, even if the extra session is held.
Market rumors gave added weight to the downward market, including the earlier reports that Premier Su, DPP Chairman Yu Shyi-kun and lawmaker Ker Chien-ming were trapped in a hotel fire.
There was also unconfirmed market talk pointing to the sales of shares by influential DPP leaders or people affiliated with the party before the political instability turns worse.
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Yu wants new election if Cabinet axed
2006/6/6
The China Post staff
Yu Shyi-kun, chairman of the ruling Democratic Progressive Party, said yesterday President Chen Shui-bian will be asked to dissolve the Legislative Yuan, if Premier Su Tseng-chang's Cabinet were toppled.
He told the press after a meeting with Premier Su and DPP caucus whip Ker Chien-ming a new legislative election must be held following an overthrow of the Cabinet.
The three met for lunch at the Sheraton Hotel, where a fire broke out shortly before 1 p.m.
They left safely. So did over 1,000 guests at one of Taipei's best known tourist hotels. No casualties were reported.
Premier Su called the DPP summit to talk about plans to cope with the opposition demand that President Chen Shui-bian step down.
James Soong, chairman of the People First Party, and his Kuomintang counterpart took to the street Saturday with more than 10,000 supporters to call on the president to resign.
A recall or an impeachment of the president is all but impossible, and the opposition alliance is planning to overthrow the Su Cabinet by proposing a no confidence vote.
It takes only a simple majority of the 221 lawmakers to adopt a no confidence vote on the premier, whereas a two-thirds majority is required to recall or impeach the president.
"If and when a no confidence vote is passed," Yu said, "we'll request the President to dissolve the Legislative Yuan."
The opposition alliance has a majority of one in the Legislative Yuan. When proposed, a no confidence vote is almost certain to be passed.
President Chen has an alternative to appoint a new premier, if the Cabinet is overthrown.
That alternative must be shunned, Yu said.
"But," Yu said, "we don't want that to happen. We want -- and the people want -- political stability, steady economic growth."
Instead of proposing a no confidence vote, Ker said, the opposition should work together with the ruling party to pass a series of important bills.
"The Legislative Yuan has to have an extraordinary session in the summer to adopt such bills as budget appropriations and an arms purchase," Ker urged.
It is in summer recess. Lawmakers will come back to work in September.
Su joined Ker in calling on Wang Jin-pyng, president of the Legislative Yuan, to agree to call a summer session to act on other bills, including the appointment of a new procurator-general.
Apparently, the ruling party doesn't want the opposition to try to overthrow the Cabinet. It knows full well it will lose more seats in the nation's highest legislative organ, if a new parliamentary election takes place before the end of this year.
A parliamentary election should be held within 60 days after the Cabinet is voted out, and the Central Election Commission is on the record that the seats should be halved from 225 to 113 for a new legislature.
Besides, constituencies have to be rearranged in time for the new election, in which, unlike in the past, one lawmaker will be elected from one district.
With the first family mired in scandals, the opposition is expected to win big in a legislative election that will be held in the next few months.
