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  5. MISC: Hi 5i Team - I have heard some concerns about other countries withdrawing money from the TSX and probably the Vancouver exchange as well. [Miscellaneous]
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Q: Hi 5i Team - I have heard some concerns about other countries withdrawing money from the TSX and probably the Vancouver exchange as well. Am assuming that this is through the sale of equities and then withdrawing the proceeds. Am not sure which countries or how many. Could you comment on whether this a valid concern, and if so then how might it affect prices of Canadian equities going forward.
Thanks.
Asked by Rob on March 11, 2024
5i Research Answer:

There has been some net selling of Canadian equities, as international investors worry about the weaker Canadian economy and dollar. Strong foreign investment in Canadian bonds continued, as non-resident investors acquired $79.7 billion worth in 2023 after an investment of $149.3 billion in 2022. The activity in both years was led by investment in private corporate bonds, mainly new issuances denominated in foreign currencies. On the other hand, foreign investors reduced their holdings of Canadian shares by $48.7 billion in 2023, following a $12.0 billion divestment in 2022. Canadian share prices, as measured by the Standard and Poor's/Toronto Stock Exchange composite index, were up by 8.4% in 2023, following a decrease of 8.7% in 2022. Going forward, it is hard to say. It is a dynamic process, and foreign investment can change quickly. If Canada does not see a recession we might see more buying.