Templeton Braving China’s Housing Bubble

The rout in China developers that sent valuations to record lows is spurring UBS Wealth Management and Templeton Emerging Markets Group to say it’s time to buy.

While some investors are concerned profit growth at developers will slow as banks curtail lending, UBS Wealth’s Kelvin Tay says tighter credit will encourage more disciplined spending and prove beneficial for the industry. Templeton is buying real estate companies with lower debt levels and projects in larger cities such as Shanghai, where house prices climbed 18 percent last month from a year earlier.