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進入《TAIPEI TIMES 焦點》 Legislature passes bill to halt scandal-hit trading
Deputy Legislative Speaker Hung Hsiu-chu strikes her gavel at the Legislative Yuan in Taipei yesterday to mark the end of a session. Photo: Lo Pei-der, Taipei Times
INVESTOR PROTECTION: Analysts said that a string of food safety scandals caused heavy losses on the stock market, leading to calls for improved trade monitoring
/ Staff writer, with CNA
The Legislative Yuan yesterday approved an amendment to the Securities and Exchange Act （證券交易法） to allow authorities to order the suspension of trading of shares in companies involved in food scandals.
Under the new rules of the act, securities authorities would also be allowed to order suspension in trading of a stock that is involved in any issue that undermines public safety, such as pollution.
Currently, the securities regulations stipulate that authorities are authorized to suspend the trading of a stock after taking into account a wide range of issues such as whether a stock’s suspension would send its value into a tailspin or damage market sentiment.
Under the current securities trading law, a listed company can face trading suspension if it is faced with legal action, is planning to announce a material transaction agreement soon, is involved in any fraudulent conduct or its stock price appears very volatile.
The bill to amend the securities law was submitted after the public strongly urged the government to protect investors if food scandals or environmental hazards occur that could trigger heavy selling in related stocks.
A series of food scandals emerged in the fourth quarter of last year, dealing a blow to consumer confidence. Among the food producers involved in the scandals, Wei Chuan Foods Corp （味全食品工業）, a subsidiary of conglomerate Ting Hsin International Group （頂新集團）, suffered a dive in its share price on the main board of the local bourse.
In late 2013, IC packaging and testing services provider Advanced Semiconductor Engineering Inc （ASE, 日月光半導體） was involved in a pollution case when its K7 plant in Kaohsiung discharged untreated waste water into a river used for farm irrigation.
ASE was ordered to partially shut down its K7 plant, which caused a plunge in the firm’s share price on the Taiwan Stock Exchange.
Market analysts said that these incidents related to food security and environmental protection have caused heavy losses for investors, prompting calls for the government to tighten monitoring of stock trading.
新聞來源：TAIPEI TIMES
