July 4, 2022

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B3 revises the data of the total foreign flow for 2021 from 102.3 billion Rls to 41.5 billion Rls after the error and the new change

B3 revises the data of the total foreign flow for 2021 from 102.3 billion Rls to 41.5 billion Rls after the error and the new change

B3 on Friday (20) announced the final review of its inflow and outflow statistics for foreign investors.

The total balance, in the primary and secondary markets, of foreign funds that entered the Brazilian stock exchange in 2021 was revised from R$102.3 billion to R$41.5 billion.

The review comes after the exchange operator identified a systemic error, revealed in April, that has distorted numbers since October 2020.

In addition, B3 said that the revision announced on Friday also includes a tentative expectation of the settlement of buying and selling in stock offerings, whether they are ex-post (follow-up) or initial (IPOs).

Previously, operations by foreigners in stock offerings were counted by B3 only when the companies disclosed the closing declaration of the offer, which could take up to six months. Now, the data takes into account the exchange’s settlement information, which takes days.

If B3 revised only the 2021 figures for systematic error, the negative impact would have been R$77.9 billion. However, due to the time change in the settlement of operations in initial public offerings and follow-ups, which had a positive impact of R$ 17.1 billion, the total figure decreased by R$ 60.8 billion compared to what was previously disclosed, to R$ 17.1 billion. $41.5 billion.

For 2020, the total impact on the entry and exit of foreigners was R$3.3 billion positive, making the balance, reported until then as R$2.6 billion outflow from B3 in the year, remain positive at R$700. Million.

In April, it was Error B3 related to listing equity lending operations on screen From October 2020. This data should not be included as the entry and exit of foreigners, because there is no financial flow in the process, according to B3.

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At the time of the review in April, the total outflow balance was corrected from an inflow of R$94.2 billion to R$67.8 billion in the first quarter.

The current total balance in 2022 is an entry of R$49.3 billion, as of May 18, already including the impact of the change in the time accounting of stock offerings. The table below shows the revised data up to the beginning of April of this year.

See below the review of foreign investor data in 2020, 2021 and 2022, in the primary and secondary markets:

Source: B3

(with Reuters)