China Surges on U.S. Stock Listings and Services – But Iranian Oil Imports Plummet

China's July economic data is rewriting expectations. While the country saw its fastest service sector growth in over a year and sent more companies to U.S. stock exchanges than ever before, its imports of Iranian oil fell sharply.

📈 Services Lead the Way: Best Growth Since May 2024 According to S&P Global, China’s General Services PMI rose sharply to 52.6 in July from 50.6 in June — the highest reading since May 2024. The boost came from stronger demand and a significant rise in new export orders, particularly benefiting small and export-focused firms along the eastern coast. In contrast, the official Chinese government services PMI stagnated at 50.0, indicating no real change among larger state-owned enterprises. The broader S&P composite PMI — which combines services and manufacturing — declined from 51.3 to 50.8, highlighting weaker performance outside the service sector.

📊 Record Number of Chinese Firms Rush to U.S. Stock Markets Despite ongoing U.S.-China tensions, Chinese companies are aggressively listing in the U.S. In the first half of 2025, 36 Chinese firms (mostly small or mid-sized) completed listings on U.S. exchanges, according to law firm K&L Gates. This follows a record 64 listings in 2024. Many of these listings were made via SPACs (Special Purpose Acquisition Companies), allowing startups to go public without traditional IPO procedures. Chinese government filings show that over 40 more companies — including mobile ad platforms and traditional medicine producers — are preparing to list on Nasdaq this year. This doesn’t even include confidential filings, meaning the total may be much higher. 🔹 Over 100 Chinese companies are currently traded in the U.S., including giants like Alibaba, JD.com, and Baidu, with a combined market cap near $1 trillion as of March 2025, according to the U.S.-China Economic and Security Review Commission.

🛢️ Iranian Oil Imports Fall Sharply While IPO momentum remains strong, China’s energy imports are tumbling. Iranian oil imports dropped nearly 30% in July to around 1.2 million barrels per day, down from 1.7 million in June, based on data from Kpler and Vortexa. The June surge was driven by faster shipments from Tehran, as traders rushed to move cargo ahead of potential fallout from a brief Iran-Israel conflict, which also involved the United States. Although fears of global energy disruptions arose, actual supply remained uninterrupted. Most Iranian oil is processed by China’s private refiners — known as “teapots.” These firms dominate the unofficial Iranian oil trade, often outside official customs records. Analysts say China remains the top buyer of this sanctioned oil despite official data often showing zero imports. But in July, teapot refiners showed little interest. “Demand is weak, and their appetite for restocking declined after heavy June imports,” said Muyu Xu, Kpler’s lead oil analyst. Xu also noted that some refiners face stricter government import quotas limiting how much oil they can bring in. Meanwhile, the Trump administration tightened sanctions against Iran even further since June, extending restrictions on oil supply chain entities and sanctioning a fourth Chinese oil terminal.

🧭 What Does It All Mean? China is playing a complex double game. On one hand, its firms are expanding globally through U.S. listings, signaling strong internal confidence. On the other, falling oil imports and geopolitical constraints reveal vulnerabilities. Booming service exports and stock listings reflect resilience and hunger for global capital. But the sharp drop in energy imports reminds us that economics and politics are tightly intertwined in today's China.

#china , #economy , #Geopolitics , #MarketTrends , #TRUMP

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