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Video Game Stocks: Kah-ching! in Beijing

Looking for a stock-market foothold in China? Oppenheimer's Paul Keung suggests electronic game companies, wildly popular in China, and traded on the Nasdaq.

Video games are even more popular in the midst of the economic downturn, he told CNBC in a Hong Kong interview.

"Initially, we started seeing gamers playing in cafes, near manufacturing centers, but when we looked at national numbers, overall game spending is up," he explained. "When you have nothing to do, gamers are actually spending more time trying to feel better; for a few dollars a month you can be an emperor, you can be a war hero, you can be the idol of millions."

"Millions" describes the game companies' financial positions: "These companies have a lot of cash, no debt, growing over 25 percent a year, and are trading well less than the S&P," he said.

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The stock on Keung's list best known to Americans is Sohu, and there are other, less well-known names.

"One name I love is Shanda," he said. "Another good name is The9, which has the "World of Warcraft" franchise in China; another interesting name is Perfect World, which has some of the best 3-D games in China."

Watch the full Keung interview in the video above.

Disclosures:

Disclosure information for Paul Keung was not immediately available.

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