China's tight liquidity conditions are "troubling," said Zhang Xin, chief executive officer of Soho China, the country's biggest developer of prime commercial real estate, amid growing concerns of a correction in the country's red-hot real estate market.
"We are seeing less and less cash in the system. When we tried to sell two projects in Shanghai – there were hundreds of [inquiries] – but very few of them actually had the cash to complete the deal," Zhang told CNBC Asia's "Squawk Box" on Wednesday.
"When you sell something of that size, billions of yuan – then you realize how tight the liquidity is, that's troubling," she added.
Last week, the developer said it was selling two commercial buildings in Shanghai for a total of 5.23 billion yuan ($853 million) – below than the initial asking price – at a time of excess supply in the country's financial capital.
(Read more: Will a weaker yuan heighten China property risks?)
Zhang said the sales were part of the company's strategy to offload non-core assets and increase its cash on hand in order to prepare for a tighter credit environment.
"When we saw the first wave of credit crunch last summer, we knew it would continue and deepen. In addition to cutting back on acquisitions, we also tried to sell some of the non-core assets," she said.
"The market down the road will surely correct itself, we want to have plenty of cash that moment," she added.