An S&P 500 company provides some insight into how we would invest in the sector.
Baidu, The9 and ShandaInteractive are his 3 recommendations.
The9 is based on "World of Warcraft" licensing for China. They have more users than any other country in the world for that game and have exclusive rights in China. The stock, according to the analyst, that is trading near cash.
3 Others they are looking at are GIGM (BUY), KONG (not buy) and JRJC.
My take is that Shanda and The9 are very interesting to look at:
1) The9 trades at cash levels so, as long as they get their license renewed this year from Blizzard-Activision (probably at higher terms like the analyst said) the stock could make a healthy run upwards.
2) Shanda Interactive is a developer of MMORPG games (massively multi-player online role-playing games) and casual online games in China. Below is a link to some of their press releases in the last twelve months.