Shares of LexinFintech Holdings Ltd – ADR (NASDAQ:LX) rose sharply in pre-market trading after reporting third-quarter results.LexinFintech reported quarterly earnings of 43 cents per share, up from 28 cents per share in the year-ago period. The company reported $367.580 million in sales this quarter, compared to $521.851 million in the same period last year.LexinFintech shares surged 15.3% to $4.03 in the pre-market trading session.Here are some other stocks moving in pre-market trading.GainersInspire Vete ...

Core Viewpoint - The report discusses the dynamic balance between savings and investment in industrialized countries since the mid-1980s, highlighting how despite declining labor income shares and other adverse factors, consumption rates have remained stable due to various supporting mechanisms [1][2]. Group 1: Key Factors Supporting Consumption - Household financial wealth has grown significantly, outpacing GDP and disposable income growth, which has positively influenced consumption levels [2][3]. - Social security systems have reduced private savings through "asset substitution effects," helping to smooth consumption during income shocks [3]. - Public social spending has alleviated household expenditure pressures, thereby enhancing disposable income levels [3]. Group 2: Investment Demand Drivers - The emergence of new investment opportunities has supported investment demand, with fixed asset investment rates remaining stable despite rising income and capital stock levels [4]. - The shift towards knowledge and technology-intensive service sector investments has been crucial, with new investment opportunities in information technology and intellectual property products providing significant support for planned investments [3][4]. Group 3: Interest Rates and Policy Management - The continuous decline in real interest rates has balanced savings and investment, with real rates dropping from high levels in the mid-1980s to below 1% post-2008 financial crisis, often entering negative territory [4]. - Effective counter-cyclical management policies have prevented short-term issues from becoming long-term problems, contrasting with Japan's prolonged economic stagnation due to indecisive macro policies [5]. Group 4: Implications for Developing Economies - The experiences of industrialized nations provide valuable insights for developing economies facing similar challenges, particularly regarding the balance of savings and investment [6]. - In China, the actual consumption level is believed to be underestimated, with high overall savings rates and relatively low consumption levels compared to other countries [6]. - Short-term measures to boost consumption should focus on aggressive fiscal policies and lowering real interest rates, while long-term strategies should include improving service sector offerings [7][8]. Group 5: Future Investment Directions - Public investment should prioritize urban renewal and infrastructure projects, especially in areas with significant unmet needs, to enhance overall economic activity [8]. - Investment in human resources and living conditions is essential, particularly for migrant workers facing inadequate housing [8]. - Fiscal and monetary policies will need to be more proactive, with potential increases in spending and further reductions in policy interest rates to stimulate economic growth [9].

Core Insights - The article discusses the dynamic balance between intended savings and planned investments in industrialized countries since the mid-1980s, highlighting how these economies maintain high consumption rates despite declining labor income shares [1][3]. Group 1: Key Factors Influencing Savings and Investments - The report identifies four key forces that enable the dynamic balance between savings and investments: household wealth, new investment opportunities, interest rates, and counter-cyclical policies [3][5]. - Household financial wealth has grown significantly, supporting consumption levels despite increasing income inequality. For instance, the average financial asset per household in the U.S. is approximately $370,000, compared to $100,000 in Europe and $120,000 in Japan [4][5]. - New investment opportunities, particularly in knowledge and technology-intensive sectors, have sustained investment demand, with fixed asset investment rates remaining stable despite high per capita income levels [4][5]. Group 2: Policy Recommendations for Consumption Growth - To boost consumption in the short term, the report suggests implementing aggressive fiscal policies and lowering policy interest rates to stimulate nominal GDP growth [6][7]. - Long-term strategies should focus on improving social security systems and enhancing service sector offerings, particularly in healthcare and education, which are areas where consumers are willing to spend more [7][8]. - Public investment should prioritize urban renewal and infrastructure projects to address existing gaps, especially in light of underutilized labor and production capacity [8][9]. Group 3: Future Economic Outlook - The article emphasizes the need for increased fiscal spending and potential adjustments in policy interest rates to lower overall financing costs, which could further stimulate economic activity [9]. - It highlights that for nominal GDP to grow by 5% to 7%, fiscal spending growth should not fall below the target GDP growth rate, indicating a need for careful fiscal management [9].