Shares of Chinese banks are currently outperforming their global peers. Recent failures of major US and European financial institutions have been a great opportunity for China’s banks to pull ahead. Now shares of Chinese lenders are the top performers in the global stock market.

Bloomberg experts have called China’s bank stocks the best in the world. Securities of its financial institutions are rallying, unlike their American and European counterparts. The conclusion was drawn from the stock analysis of 166 banking companies around the world tracked by the Bloomberg World Banks Index. Shares of local giants, including the People's Bank of China, Industrial and Commercial Bank of China, China Construction Bank, and other megabanks, responded with gains to volatility in global markets. Market participants believe that the Chinese authorities are better prepared to handle a crisis than those of Western countries, which adds to investor confidence. "The nation's banking system, the argument goes, is shielded from global volatility and can withstand acute financial distress," Bloomberg said.

The world's leading banks saw a share sell-off amid the recent bankruptcy of US-based lender Silicon Valley Bank (SVB). Its failure was the largest in US history since the financial crisis of 2008. This prompted investors to dump other US and European bank stocks. The sudden collapse of one of the biggest US banks raised fears of a spillover. This made investors worry that other financial institutions could suffer the same fate as SVB.