One of China's top 5 boutique investment banks

The Balloch Group was ranked among the top five M&A and private placement advisors by ChinaVenture in 2007.

Sector Expertise

China’s economy is quickly evolving from a manufacturing based, export driven economy to an economy driven by a rapidly expanding urban middle class consumer market. The disposable income of China’s middle class will grow by 8 times in the next decade. This growth will create tremendous opportunities for both domestic and international companies in China and their investors. TBG aims at investing our resources alongside our clients in this next wave of growth.

Alternative Energy

China’s size and high rate of economic growth present huge environmental challenges, that are high on the government’s agenda. China’s Renewable Energy Law provides incentives for investment in alternative energy, especially in the wind, solar and biofuel energy fields. China is planning to reduce its dependency on coal from 70% of its energy needs to 60% by 2020 by increasing its use of renewable energy sources from 6% today to 15% in 2020.

Automotive

The year 2006 was a milestone for China’s auto industry as it passed Japan to become the world’s second largest auto market after the United States. By the end of 2006, China’s auto industry sold 7.2 million vehicles representing a 23% CAGR since 2000. This strong growth continued in 2007 when China’s auto industry grew at a 27% rate. By 2015, China is expected to become the world’s largest vehicle producer. The days of the bicycle forming the backbone of transportation in this country are already a hazy memory.

Consumer Products

In order to continue to feed a nation comprising 20% of the world’s population on only 7% of the world’s arable land , China provides investors with a booming agricultural market and an exciting investment environment. In addition to opportunities to improve crop yield and productivity, China’s middle class is spending an increasing amount of money as their diets improve and tastes change.

Financial Services

Investing in stocks, buying insurance, and using a credit card are all relatively new concepts for Chinese consumers. Chinese consumers have accumulated savings totaling US$1.7 trillion due to a savings rate that approaches 50%. However only roughly a third of the US$1.7 trillion in savings is under active management presenting a huge market for providers of financial services.

Global Industries

The growth of China’s urban areas and manufacturing base has created an industrial juggernaut. China has more steel mills than the US, Japan, and Russia combined, is ranked first in stainless steel output and produces a third of the world’s aluminum. It also accounts for almost half of the world’s cement and flat glass production and its construction industry employs more than the population of Canada.

Media & Technology

China’s telecommunications, media and technology (TMT) sectors are a hot-spot for global venture capital and private equity investment. The country is ranked first worldwide in subscribers to mobile phones (China has more mobile telephone subscribers than the combined population of the US and Japan), fixed telephones and cable TV, and second for Internet users. In 2006, there were 79 mergers and acquisitions in TMT-related companies alone, 45 of which involved a total capital of more than US$2 billion. The TMT sector accounts for 90% of all Chinese overseas listed companies and with 3G mobile technology on the horizon, this dynamic sector is just starting to crack its potential.

Natural Resources / Oil & Gas

China’s manufacturing base and growing demands of its own population has created a tremendous demand for natural resources and energy. Chinese companies are actively diversifying their resource base through overseas acquisitions of both companies and assets The domestic mining sector is also undergoin change, as smaller, less efficient suppliers are being consolidated into world class competitors.

China’s rapid industrialization has transformed it from a net oil exporter in 1993 to one that imports almost half its oil and natural gas today. As such, there is a huge demand for alternative energy technology and conventional energy sources.