ARC Capital Holdings sells stake in Huiyin Household Appliances

ARC Capital Holdings has sold its holding in China's Huiyin Household Appliances following financial strains in the market, the investment company announced Thursday.

ARC received HK$65.1m for the disposal of Huiyin, which is publicly traded on the Hong Kong Stock Exchange.

The company began selling its shares in the market through multiple tranches in August 2012.

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The firm - which invests in retail and consumer sectors in China - had injected $42.3m in Huiyin in November 2007.

However the company decided to let go of its stake on the back of poor performance in the electronics retailing industry in 2011 as China's government ceased the Rural Appliances Rebate Program and e-commerce marginalised traditional retailing platforms.

"As a result, Huiyin's financial performance suffered along with many of its peers," the company said in a statement.

ARC resigned its directorship on Huiyin's board on June 30th, 2012, before selling its shares.

Proceeds of the sale will be distributed to shareholders in the near future, the company added.

RD