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China's cram schools scramble out of tutoring as crackdown looms

Foreign languages, study abroad and vocational training among new focus areas

With competitive entrance exams and higher income, parents in China are increasingly spending money on tutoring and test prep.   © Reuters

DALIAN, China/HONG KONG -- After-school tutoring and test-prep companies in China are racing to reassess their operations and change their focuses after Beijing sent shock waves through the sector with new regulatory restrictions last month.

The clampdown is also unsettling investors that have poured billions of dollars into both listed and IPO-headed companies that until recently looked like golden opportunities.

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