Telstra still committed to China after divesting SouFun stake

Telstra (TLS.ASX), Australia’s largest telecommunications company, said it is still committed to the Chinese market despite its decision to offload its 50.5% stake in property website owner SouFun Holdings, Bloomberg reported. SouFun filed for an initial public offering in the US last week, valuing itself at US$850 million. Telstra bought into SouFun for US$254 million in 2006 under the leadership of then-CEO Sol Trujillo. Current CEO David Thodey said his decision to sell "doesn’t mean, as people have speculated, that we’re not committed to China." He said the SouFun IPO represents a natural exit for the SouFun investment. Telstra lowered its 2011 profit forecast last month, driving shares down to their lowest level since December 2008. The revision was attributed to the company’s decision to cut mobile voice and internet access prices to protect market share as Australian households abandon the fixed-line services which accounts for the company’s widest profit margin.