What happened

Shares of Pinduoduo (NASDAQ:PDD) dipped 32.9% in October, according to data provided by S&P Global Market Intelligence. The Chinese e-commerce company's stock posted big sell-offs as concerns about trade disputes with the U.S. weighed on China's tech sector and broader market. 

CQQQ Chart

CQQQ data by YCharts.

Pinduoduo, which provides an e-commerce service that allows users to team up to save money buying goods in bulk, didn't trade lower due to company-specific news last month. Its stock was priced for growth, and had gained roughly 150% from its $19 initial public offering price heading into October, so it's not surprising that shares saw steep sell-offs amid a serious pullback for the Chinese tech sector.

A pile of miniature boxes and a miniature shopping basket on top of a tablet and laptop.

Image source: Getty Images.

So what

The Invesco China Technology ETF, which bundles together 74 different Chinese tech stocks in a single fund, is down roughly 30% year to date. That movement reflects that the country's technology sector has lost favor with investors as economic growth has cooled, and the potential for a prolonged trade war with the U.S. raises the possibility of further slowdown, so it's reasonable to expect that growth-dependent tech stocks like Pinduoduo could continue to see big swings in conjunction with shifts in the trade outlook.

Now what

Pinduoduo stock has seen a small recovery in November along with some positive movement for the broader market and Chinese tech sector, with shares trading up roughly 3.7% in the month so far. 

CQQQ Chart

CQQQ data by YCharts.

The company's stock climbed roughly 15% on Nov. 1, following statements made by President Trump suggesting that progress was being made on trade talks with China and that it was possible that the two countries would have a trade deal signed in the not-too-distant future. Subsequent comments from the administration seemed less optimistic in content and tone about a quick resolution, and both Pinduoduo stock and the Chinese tech sector appear to have retreated in response.

Pinduoduo is scheduled to report third-quarter earnings before the market opens on Nov. 20, but it has yet to issue sales or earnings guidance for the period.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.