What happened

Shares of Uxin Ltd. (NASDAQ:UXIN) continued their roller-coaster ride last month, as the stock fell after fleeting gains in December on concerns about the Chinese economy slowing. Shares of the online used-car platform gave up 30% in January, according to data from S&P Global Market Intelligence, as signs again pointed to the Chinese economy weakening.

As the chart below shows, the stock's decline came entirely at the beginning of the month, as a few key data points came out:

UXIN Chart

UXIN data by YCharts.

So what

Uxin shares' worst day of the month came on Jan. 2, the first trading day of the month, as the stock fell 20%, continuing a steep slide that began in December. A purchasing managers' index showed Chinese manufacturing activity had contracted in December -- it slipped from 50.2 in November to 49.7 in December. Any number below 50 indicates a contraction rather than an expansion.

Two Asian men talk next to a car.

Image source: Uxin.

After hours, news that Apple was cutting its guidance due to weakness in China also pressured Chinese stocks and boosted concerns about the sector. As Uxin's business focuses on sales of used cars, which are big-ticket items, the company would be affected by any significant pullback in Chinese consumer spending.

Check out the latest Uxin earnings call transcript.

Now what

Uxin stock had surged in early December, more than tripling on news that it would partner with Alibaba's Taobao marketplace to open an online mall on the popular site. However, with the slide in January, Uxin has now given up essentially all of those gains. The stock is likely to remain volatile as the company is putting up fast revenue growth, but also wide losses. The opportunity in the Chinese used-car market is enormous, but that alone is no guarantee of success.

We'll learn more when Uxin reports fourth-quarter earnings in the upcoming weeks. Analysts expect a loss of $0.11 per share, and revenue of $157.5 million.