Foreigners Reduce Holdings of Canadian Securities

Foreign investors reduced their holdings of Canadian securities by C$5.6 billion in December 2025, reversing a C$16.0 billion increase in November. The change was led by a C$17.6 billion net divestment in debt securities and a C$12.07 billion net increase in equities. Non-resident investors sold C$11.12 billion of Canadian bonds, with corporate bonds showing a C$22.53 billion divestment partially offset by purchases of government bonds (+C$11.41 billion). Equities recorded a C$12.07 billion gain, with acquisitions targeting shares from all industries except the banking sector. On the other side, Canadian investors acquired C$13.06 billion of foreign securities, led by purchases of US shares.

Foreign investors increased their holdings of Canadian securities by C$16.33 billion in November 2025, slowing from C$46.62 billion in October. The change was led by a C$23.83 billion net increase in debt securities and a C$7.50 billion net reduction in equities. Non-resident investors purchased C$23.45 billion of Canadian bonds, with private corporate bonds (+C$13.42 billion) and government bonds (+C$10.03 billion) accounting for the bulk of inflows. Equities recorded a C$7.50 billion decline, with divestments concentrated in the energy and mining sector while purchases were made in the banking sector. On the other side, Canadian investors acquired C$16.49 billion of foreign securities, reversing the C$11.58 billion divestment recorded in October.

Foreign investors increased their holdings of Canadian securities by C$46.62 billion in October 2025, the highest investment since March 2022, accelerating from C$31.32 billion in the previous month and well above the market expectations of C$21.84 billion. The surge was led by a C$34.0 billion net increase in debt securities and C$12.6 billion in equities. Non-resident investors purchased C$38.6 billion of Canadian bonds, with private corporate bonds (+C$17.8 billion) and federal government bonds (+C$16.2 billion) accounting for the bulk of inflows. Equities saw a C$12.6 billion rise, the highest monthly investment since September 2024, with acquisitions concentrated in the energy and mining and finance and insurance sectors, partially offset by divestments in trade and transportation shares. On the other side, Canadian investors trimmed C$11.6 billion of foreign securities, the largest monthly reduction since January 2023, focusing on stocks and bonds, particularly US assets.