British asset management company Schroders has announced plans to exit China's mutual funds business after operating in the market for just three years.

The decision represents a notable retreat from one of the world's largest asset management markets for the London-based firm. Schroders had entered China's mutual funds sector as part of broader international expansion efforts by foreign financial services companies.

The withdrawal comes amid ongoing challenges for international asset managers operating in China's highly regulated financial sector. Foreign firms have faced increasing competition from domestic players and navigating complex regulatory requirements.

Schroders has not immediately provided detailed reasons for the exit decision or outlined specific timelines for winding down operations. The company's departure follows similar moves by other international financial firms reassessing their China strategies in recent years.