Yixin to focus on online payment

China Telecom Corp Ltd said on Wednesday that its new messaging product Yixin marks a major step in the company's attempt to diversify into Internet business.

The country's biggest fixed-line and third-largest mobile operator by user numbers hopes that growth in the new field can help compensate for an expected slowdown in its infrastructure-based broadband, fixed-line and mobile businesses.

"We need a new growth engine as the growth of our traditional businesses will slow down," Wang Xiaochu, the company's chairman and chief executive officer, said at a news briefing in Hong Kong. He made the comments after reporting 15.9 percent profit growth in the first half to 10.2 billion yuan ($1.66 billion).