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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