Perfect World (PWRD +6.6%) rallies after Citi starts coverage with a Buy as part of a broader launch for Chinese gaming stocks. The firm notes PWRD trades at almost zero equity value exc. net cash due to concerns about declining sales, and predicts existing games and overseas licensing will keep cash flow healthy. Citi also thinks a dividend could arrive later this year. Also receiving Buy ratings (I, II) are Changyou.com (CYOU +0.5%) and Giant Interactive (GA +2%).