UK-based underwriter has quit China's struggling $380bn mutual fund industry, amid increasing competition and deteriorating assets.

The company has put an end to its five-year long haul to get a fund license in China, by breaking its ties with Central China Securities, as reported by Reuters.

A source familiar with the entire development told Reuters, "Aviva started seeking a fund license in China since 2007 and has now quit partly because it got a bit impatient and also because China’s fund market may be less important in Aviva’s global strategy."

Aviva spokeswoman Angela Warburton told the new agency, "The Chinese market remains of great interest to Aviva Investors and we will be considering the best way to cover the local institutional market going forward."

The underwriter is selling or shutting over a quarter of its businesses to meet the capital requirement as well as increasing regulatory pressure.