Contrarian CEO Zhang warns of bubble in second-tier cities

Soho China's CEO Zhang Xin recently warned of a serious property bubble in China's real estate market, which put her at odds with other Chinese property bosses who say the high prices are justified by fundamental demand.

Zhang said in an interview with Reuters that China was already facing a serious property bubble, especially in second-tier cities, and the government must tighten bank lending to prevent it from swelling to dangerous proportions.

"The government needs to realize how serious the asset bubble is," Zhang said. "It cannot control the asset bubble by just saying a few words. The most fundamental solution is to tighten credit."