A closer look at the Canadian equities markets

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• Attracted by Canada’s stability and economic health, foreign investors have turned their attention to the country’s public equity markets. In fact, non-resident investors acquired $6.6 billion in Canadian equities from April-June 2013 alone.

Canada offers one of the most stable, well-regulated and attractive investment environments in the world

For foreign investors, Canada offers a marketplace that rivals any advanced nation in the world. With the lowest debt-to-GDP ratio of all G7 countries, Canada was also ranked by Forbes Magazine among the top five countries for business in the G20, and is considered one of the top five best places to start a business according to the 2013 Entrepreneurship Barometer report.

The health of Canada’s economy has remained strong and it withstood the shocks of the recent global economic crisis better than most industrialized economies. The country’s economy has grown steadily since 2009 and has now fully recovered the jobs and output that it lost during the depths of the global slowdown – the first G7 country to meet that challenge. And, according to the Economist Intelligence Unit, Canada will remain the most attractive place to do business in the G7 for the next five years.

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Attracted by Canada’s stability and economic health, foreign investors have turned their attention to the country’s public equity markets. In fact, non-resident investors acquired $6.6 billion in Canadian equities from April to June 2013 alone.

Canada fuels the world

Publicly listed companies in Canada are involved in every aspect of the global economy, from raw materials to advanced technologies.

As a source of raw materials, the world relies on these businesses for everything from gold and uranium, to wheat and potash. At the same time, modern technological innovations, from ultra-quiet jet planes to high-definition security cameras, have been developed by Canadian public companies and embraced by consumers throughout the world, leading to new ways of doing things.

These public companies are governed by a strong and respected regulatory environment, and supported by a robust ecosystem of bankers, lawyers, accountants and analysts. Of note, Canada’s banks rank among the strongest and most stable in the world.

Foreign investors have demonstrated their confidence in Canada by becoming even more involved in the country’s economy. From 2000 to 2012, foreign investors nearly doubled their direct investment in Canada, to more than $633 billion.