Canadians have pulled back from this investment

Canadians have pulled back from this investment

Canadians have pulled back from this investment Canadian investors reduced their holdings of foreign equities in July, the latest month of data released by Statistics Canada.

There was a net divestment of foreign securities of $1.8 billion as an increase in foreign debt securities moderated the $2.9 billion reduction in shares. Canadians acquired $1.1 billion of foreign debt securities, mainly US Treasury bonds.

Canadian investors have acquired $31.3 billion of foreign equities so far this year, compared to a $243 million divestment in the same period of 2016.

Meanwhile, foreign investors flocked to Canadian bonds to reach a record high of $23.8 billion; a turnaround from June’s divestment of $858 million.

Almost half of the bonds were issued by Canadian banks, $8 billion were federal government bonds (compared to June’s divestment of $9.8 billion), $2.9 billion were provincial bonds.

Since the start of 2017, foreign investors have acquired $124.0 billion in Canadian securities, with $97.3 billion issued by private corporations.

Non-resident investors reduced holdings in Canada money market instruments by $1.5 billion and acquired $1.6 billion of Canadian equities.

The figures mean a net flow of $25.8 billion into the Canadian economy in July.  

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