Billionaire investor George Soros said on Thursday that the Chinese stock market is overheating.

“Right now, the Chinese market is overheating and they have to slow it down,” Soros told Bloomberg Television from Davos, Switzerland where he is attending the World Economic Forum’s annual meeting. “It remains to be seen how successful they are he said.

In recent weeks, the Chinese government has indicated it will begin tightening credit.

Hong Kong’s Hang Seng Index, which had reached peak over 30,000 points in late 2007, fell just below 12,000 at the depths of the financial crisis in March of last year.

After a global recovery led the Hang Hang Seng to nearly 23,000 points in November of 2009, shares have slipped. The index closed at 20,356.37 on Thursday.

The Shanghai Composite Index experienced similar results since the start of the crisis.