Notable bears in European stock markets are casting doubt on a European regulator’s latest proposal on short-selling disclosures following this year’s GameStop saga.
Short-seller Dan Yu, founder of Gotham City Research, told Financial News that the new proposals would dent Europe’s attractiveness as a financial centre.
“What is being proposed here would lead to lower trading volumes and market liquidity,” Yu, whose criticisms against Spain WiFi provider Let’s Gowex and UK insurance firm Quindell seven years ago led to the collapse of those companies.
“As a result, Europe would become a less desirable venue for issuers and financial markets participants. They would simply list or trade elsewhere, and Europe’s competitiveness would further erode. It would be preventable suicide,” he told Financial News.
The full article is available at https://www.fnlondon.com/articles/short-sellers-scoff-at-eu-scrutiny-amid-gamestop-frenzy-were-being-hung-out-to-dry-20210301