Shares of Uxin (UXIN -3.52%) were sliding today, as reports showed the Chinese economy continuing to weaken. As a fast-growing but unprofitable company, Uxin shares are highly volatile and sensitive to broader macroeconomic news, as car sales tend to be cyclical. Consequently, the stock closed down 11.1%.
Check out the latest Uxin earnings call transcript.
Shares of Chinese and U.S. stocks headed lower today, as China reported that exports in December fell the most in two years while imports also contracted, the latest data point to show that the Chinese economy continues to decelerate, which also bodes poorly for the global economy, since China is the world's largest exporter.
U.S-traded Chinese stocks largely fell, since they're particularly sensitive to such data, and Uxin, as the country's largest online used-car platform, is dependent on having Chinese consumers continue to spend on cars.
Uxin shares have been highly volatile since the company had its IPO in June at $9 a share. In December, the stock tripled on news that it would partner with Alibaba's Taobao marketplace, but then it gave back most of those gains by the end of the month as traders capitalized on that volatility. Considering the company's uncertain future, its fast growth and lack of profits, and the slowdown in the Chinese economy, the stock's volatility is likely to remain as the company's fundamentals continue to take shape.