The Liberal Party yesterday ruled out a coalition between the three major parties in Legco.
The Democratic Party's stance on the June 4 massacre would be the biggest stumbling block, Liberal chairman James Tien Pei-chun said.
He said his party and the DAB could not get together with the Democrats, who believe Beijing's 'counter-revolutionary' verdict on the pro-democracy movement must be reversed.
The presence of unionists in the Democratic Party and the DAB was also a major stumbling block.
The possibility of a ruling coalition was floated on Sunday by DAB chairman Tsang Yok-sing.
Mr Tien said the DAB was in the best position because its political stance usually was similar to that of the Liberal Party and its economic stance was similar to the Democratic Party's.
'Because of their different political stances, it is impossible for the Democrats and the DAB to form a coalition. The same goes for the DAB and the Liberals because of employer-employee economic issues,' he said.