China's shadow-banking assets are expected to continue declining in the first half of 2022, according to a report from Fitch Ratings.

Systemic risks associated with shadow-financing activity have eased, as shadow-banking assets were cut by 40 percent from 2017 under the country's strengthened regulation, the report stated.

It added that the move has contributed to the healthy development of non-bank credit intermediation.

China's non-bank financing is expected to recover gradually from the second half of this year, as a regulatory crackdown since 2017 has reduced irregular financing activities and contagion risks to the financial system, Fitch said.