Top China Stock Picks for 2009: David Sterman likes Sohu.com for a long-term play on online advertising in China. The company throws off 33% net profit margins.

Top China Stock Picks for 2009: David Sterman also likes advertising company Focus Media. Sterman said Focus Media is well positioned to play the Chinese consumer. The stock has been hammered down from $59 to a current price of around $8 a share.

Top China Stock Picks for 2009: David Sterman called China Mobile the AT&T of China. The company has a very strong balance sheet and trades at 12 times 2009 earnings.

Since Sterman is bullish on Sohu.com, investors might want to add to their radar some other Chinese Internet. Baidu.com is the leading search engine in China. The stock is down from $398 to around $121 a share. Goldman Sachs Group recently upgrade the stock to their conviction buy list, saying the company is set to increase profit and sales thanks to a rise in paid Web searches in the country.

Another Chinese Internet stock worth considering is NetEase.com. This company operates three segments: Online Game Services, Advertising Services and Wireless Value-added Services. The stock trades at a forward price-to-earnings of 11.

Take a look at Chinese Internet stock SINA Corporation. Sina is an online media company and information services provider in China. This stock has plunged from $58 to around $23 a share. SINA trades at just 12 times forward earnings and the company has over $460 million in cash on its balance sheet.

Investors might want to put Chinese Internet stock Shanda Interactive on their radar. Shanda is an interactive entertainment media company, operates online games in China. This stock is only $8 off its 52-week high of $38 a share, which shows it has held up well in the bear market. Shares trade at only 10 times forward earnings.

Since Sterman is bullish on China Mobile, investors might want to take a look at China Unicom. This stock has fallen from $25 to around $12 a share. The dividend yield on the stock is 2.2%.