Following bribery allegations, CMGE's shares drop 23%

Talk to the right people and you still hear plenty of stories about dodgy dealings in the Chinese mobile games industry.

But you don't expect that sort of rumour to hit NASDAQ-floated companies such as China Mobile Games and Entertainment (NASDAQ:CMGE).

Nevertheless, that's exactly what's happened with the news that the company has suspended nine executives, including president Shuling Ying and two vice presidents, over bribery allegations.

The issue appears to be concerning the publisher's dealings with its game development partners.

The result is that the company's shares have dropped 23 percent in one day.

Industry stalwart

CMGE is one of China's most established mobile games companies.

It posted quarterly sales of $34.5 million, up 488 percent year-on-year, and net income of $5.6 million for its most recent period.

As well as its own 500 developers based in China (out of total workforce of 1,200), it also works with western companies such as Gameloft and Glu Mobile to publish games in China.

[source: Bidness Etc]