FRANKFURT (Reuters) – Germany’s financial watchdog BaFin said it has no plans to ban short-selling in payments company Wirecard even as hedge funds increased their bets speculating on a fall in the company’s share price.
FILE PHOTO: The headquarters of Wirecard AG, an independent provider of outsourcing and white label solutions for electronic payment transactions is seen in Aschheim near Munich, Germany April 25, 2019. REUTERS/Michael Dalder/File Photo
“We are not currently planning a short sale ban for Wirecard,” the BaFin spokeswoman told Reuters in an emailed statement.
“High net short positions alone are not a reason,” she said.
Hedge funds have significantly increased their bets on falling shares over the past few days. Net short positions now stand at more than ten percent, according to data published in the Federal Gazette on Thursday.
Short-selling is when an investor borrows shares to sell in the hope of being able to buy them back later at a lower price.
It…
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