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As the world's second largest economy, China nevertheless faces the inevitable economic slowdown and structural challenges as it seeks to transition its manufacturing-based economy into a service and consumer-oriented economy. In line with the government's support for Chinese companies seeking overseas investments, BHR is well-positioned, with the support of our sponsors including the Bank of China and Bohai Capital and our global resources, to bridge China and the rest of the world and to capitalise on investment opportunities with our strategic partners.
In pursuing cross-border M&A opportunities, we seek value investments in the high-end manufacturing, financial services, healthcare and pharmaceuticals, energy & resources, environmental technology and consumer goods sectors, focusing on target companies with proprietary technology, experienced management, brand recognition, market share and most importantly, synergy potential with our Chinese industrial co-investors.
We typically make our acquisitions jointly with leading Chinese industrial players best positioned to achieve synergy with, and provide economies of scale and cost efficiency for, the relevant target companies. We have, over the years, built upon the legacy of our stakeholders (Bank of China and Harvest Fund, among others) and strengthened our relationships with leading Chinese enterprises in their pursuit of cross-border investment opportunities.
We make our investments through buyout or acquisition of control stakes in target companies. We exit from our investments through listings or trade sales.
Reform of State-Owned Enterprises ("SOE"), as announced during the Third Plenary Session of the 18th National Congress meetings and re-emphasized at the 2017 19th National Congress meetings, remains a ongoing key element of the Chinese Government's initiative to further vitalise the Chinese domestic market. Investment opportunities, in both monopolistic and competitive industries, which heretofore, have been limited to public investors, are now available to both domestic and foreign investors. BHR is among the select few to have participated in the State's pilot reform initiative involving the spinning off of the non-oil business segments of Sinopec Group into a separate Sinopec Marketing Corporation.
In pursuing SOE reform opportunities, we seek to participate in both monopolistic/oligopolistic and certain competitive sectors, by identifying valuable and underutilized resources and assets and assisting portfolio companies to streamline operations, implement corporate governance and management incentives, alleviate resource mismanagement and allocative inefficiencies, with the view of improving overall efficiencies and profitability.