Shares of China Mobile Games are down 24% to $14.35 after the company reportedly removed a total of nine executives, including President Ying Shuling. The news was reported by Sina Tech, according to Bloomberg. Nomura says China Mobile indicated the nine managers were removed for alleged involvement in bribery within its game publishing business.
It will be interesting to see how this will play out. It is hard to believe that CMGE’s value really should have shrunk by 25% due to this, in our opinion. It is also worth to remember that one of the biggest shareholders in CMGE is a large Chinese pension fund (state owned). Seems unlikely that they will let CMGE go down for “simple” bribery.